Federal Bill Introduced on 340B Drug Pricing

Rep. Jack Bergman (R-MI) has introduced the Safety Net Provider Drug Pricing Protection Act 2.0 BERGMI_084.

This new legislation would prohibit any arrangement under the 340B Program that would allow drug manufacturers to require any of the providers listed below to pay more than the 340B ceiling price at the time of purchase, with later reconciliation through a rebate, reimbursement, or other payment including FQHCs, Hemophilia Treatment Centers, Critical Access Hospitals, Sole Community Hospitals, Ryan White HIV/AIDS Clinics, and other safety net providers.

Together, these providers represent just 15 percent of all 340B spending, yet they are among the most vulnerable to a rebate-based model for the 340B Program. For them, the up-front 340B discount is not surplus revenue – it is a critical lifeline that sustains clinic operations and keeps rural hospitals open.