The 340B Drug Pricing Program is a key component of the patchwork federal support essential hospitals rely on to meet their safety net mission. Congress established the 340B program to enable essential hospitals and other covered entities “to stretch scarce Federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.” With their 340B savings, essential hospitals have the financial flexibility to tailor services and programs to their community’s unique challenges at nearly no cost to taxpayers.
Damaging drug company actions and a delay in repayment of Medicare Part B cuts the U.S. Supreme Court deemed unlawful threaten to weaken 340B. Congress must act now to defend the program. We urge lawmakers to direct HHS and CMS to swiftly develop and implement a remedy that promptly repays 340B hospitals the difference between what they previously were paid and the legal amount, with interest and without harming other hospitals.
In recent years, drug companies have unilaterally acted to restrict access to 340B drugs dispensed at pharmacies that contract with hospitals to extend the reach of 340B discounts. We urge Congress to intervene to protect the integrity of the 340B program by halting drug companies’ unlawful actions that have resulted in overcharges to 340B covered entities.