H.R. 8574 is a Comprehensive, Meaningful Solution that is Needed to
Save America’s 340B Program
Washington, D.C. – The Alliance to Save America’s 340B Program (ASAP 340B) today applauded the introduction of the 340B Affording Care for Communities & Ensuring a Strong Safety-net – or the 340B ACCESS Act (H.R. 8574). This bill is the comprehensive, meaningful solution that is needed to ensure the 340B program can live up to its mission of helping underserved communities by increasing access to affordable drugs and health services. Sponsored by Representatives Larry Bucshon (IN-8), Earl L. "Buddy" Carter (GA-01), and Diana Harshbarger (TN-01), the bill represents a set of clear, practical, and achievable policies that realign the program in the best interests of America’s safety-net.
“Just a year ago, a broad coalition of stakeholders representing all corners of the 340B program came together because we understood the urgent need to provide certainty to the 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,” said ASAP 340B Executive Director Thomas Johnson. “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.”
ASAP 340B is a partnership of Community Health Centers, patient, provider and consumer advocates, and leaders from the biopharmaceutical industry working to improve the 340B program. The 340B ACCESS Act is broadly aligned with ASAP 340B’s ten policy principles, which have guided the organization’s work to pursue needed reforms to the 340B program. Key highlights include:
Requires 340B to directly benefit patients through lower out-of-pocket costs – Hospitals participating in the program would be required to institute a sliding fee scale for qualifying low-income and uninsured patients and would be prohibited from engaging in aggressive medical debt collection practices against these patients. The bill also establishes that federal grantees and their contract pharmacies must provide affordability assistance policies that ensure patients are not denied access to 340B medicines based on their ability to pay. This would ensure that as many as 48 million Americans could access lower cost drugs.
Modernizes 340B for contract pharmacy arrangements – Contract pharmacy arrangements would be recognized in the 340B statute and new policies would be put in place to prevent abuse. The bill also requires that manufacturers ship 340B drugs to authorized contract pharmacies.
Ensures 340B benefits true safety-net providers through stronger eligibility requirements – New eligibility requirements for hospitals and child sites would be established, varying by hospital type, to ensure that the program is benefiting true safety-net providers in underserved communities. The bill protects access for rural health providers like Critical Access Hospitals and Sole Community Hospitals by providing them with flexibilities similar to those given to grantees. The bill also allows more hospitals to take advantage of the new Rural Emergency Hospital designation without losing their 340B eligibility.
Protects 340B from abuse by middlemen – New rules prohibiting pharmacy benefit managers (PBMs) from imposing discriminatory contracts on covered entities and from interfering with a patient’s choice to receive a 340B drug from a covered entity or contract pharmacy. Contract pharmacies and third-party administrators would also be limited to charging flat fair-market value fees for their services.
Additionally, the legislation contains language to clarify the intent of the program, create a neutral 340B claims data clearinghouse, and adds needed transparency to the program.
To learn more about ASAP 340B and how the 340B ACCESS Act addresses issues outlined in our policy principles visit us at asap340B.org.
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About the Alliance to Save America’s 340B Program (ASAP 340B)
The Alliance to Save America’s 340B Program (ASAP 340B) is a partnership of Community Health Centers, patient, provider and consumer advocates, and leaders from the biopharmaceutical industry working to improve the 340B program. ASAP 340B is focused on advancing meaningful and achievable changes in support of our nation’s safety-net providers and underserved communities. To learn more, visit asap340B.org and follow us on Twitter @asap340B.
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