Federal bill seeks to curb 340B eligibility

On May 28, representatives from three states introduced a federal bill to amend the 340B program by recognizing contract pharmacies, restricting pharmacy benefit managers and tightening eligibility criteria. 

Indiana Rep. Larry Bucshon, MD, Georgia Rep. Buddy Carter and Tennessee Rep. and pharmacist Diana Harshbarger proposed the 340B Affording Care for Communities and Ensuring a Strong Safety-Net Act. The bill also seeks to define a covered entity patient, establish child site eligibility and require 340B entities to adhere to a sliding fee scale to ensure drug discounts. 

As of May 2023, more than 2,600 hospitals participated in the program, which discounts drugs for facilities caring for many uninsured and low-income patients. The legislators said the federal program has rapidly grown without sufficient transparency or oversight, according to a May 28 news release from Dr. Bucshon's congressional office. 

Here is how leaders of 340B-focused groups have reacted to the bill:

  • Maureen Testoni, president and CEO of 340B Health: "The 340B ACCESS Act is the legislative version of a pharmaceutical industry wish list for major cuts to 340B. Drug companies already have imposed unilateral restrictions on 340B that have harmed patient access to care. … If this bill were to become law, it would decimate the resources that enable crucial care and eliminate effective curbs on drug price hikes for 340B and non-340B drugs alike."

  • Thomas Johnson, executive director of Alliance to Save America's 340B Program: "This program, which was originally meant to help those who are underserved, lacked the clarity and predictability that all stakeholders need to help improve outcomes for vulnerable patients. Today, we are pleased to see the introduction of the 340B ACCESS Act because it embodies the clear and comprehensive approach to reform that our coalition has been advocating for. Most importantly, this legislation ensures patients in underserved communities directly benefit from the program."

  • Kyu Rhee, MD, president and CEO of National Association of Community Health Centers: "We are grateful the legislation enshrines the important role of contract pharmacies in providing medicines near where patients live and work. We look forward to working with leaders in Congress and ASAP 340B stakeholders to ensure passage of this landmark legislation."

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