The American Hospital Association told the House Energy and Commerce committees that it strongly supports the 340B Drug Pricing Program and opposes any efforts that would "diminish the value and scope" of the program.
The AHA said in a June 3 letter to committee leaders that the program is especially critical amid rising drug prices and financial challenges health systems face. The group said that while the program has grown over time, the growth has "occurred largely due to factors outside of hospitals’ control, including the dramatic growth in drug prices and the increased reliance by providers on specialty drugs."
The group said it opposes the House bill known as the 340B Affording Care for Communities and Ensuring a Strong Safety-Net Act, arguing it will "dismantle" the 340B program. The AHA alleges that the bill would enrich drug companies by allowing them forego their 340B obligations.
"Among many problematic provisions in the bill, it seeks to limit hospital eligibility for the program, impose unworkable conditions of participation and create onerous and punitive compliance requirements," the AHA said in the letter. "It also would limit the ability of states to exercise their delegated powers to regulate drug distribution, which several states have successfully used to counter drug company restrictions on the use of contract pharmacies."
Read the full letter here.