CHA News Article

Rep. Matsui Introduces Legislation to Improve, Clarify 340B Program
CHA supports enhancements to 340B Drug Pricing Program

Today, Rep. Doris Matsui (D-Sacramento) introduced House Resolution 6071, known as the Stretching Entity Resources for Vulnerable (SERV) Communities Act, which clarifies the intent of the 340B Drug Pricing Program and provides for enhanced program integrity. The bill text, a one-page summary, a section-by-section summary and CHA’s support letter, which was submitted yesterday, are attached. CHA also issued a news release today in support of the legislation.

The bill would improve the program’s integrity and transparency by requiring the Secretary of Health and Human Services to audit both providers and drug manufacturers. Manufacturers would also be required to disclose critical pricing information.

The bill would reverse the cut in Medicare reimbursement to 340B hospitals for their purchases of Part B drugs set forth in the calendar year 2018 outpatient prospective payment system final rule. In December 2017, CHA joined 31 state and regional hospital associations in an ongoing litigation effort to overturn cuts to the 340B program.

CHA supports the SERV Communities Act, and thanks Rep. Matsui for her recognition of the 340B program’s important role in preserving vital health care programs and services for seniors, children and others across California.