Last week, a bipartisan group of senators released a discussion draft of legislation, the SUSTAIN 340B Act, to address concerns with the 340B drug pricing program. Read on to learn more about their efforts in this weeks' TPCA policy blog.
The federal 340B drug pricing program allows health centers to purchase outpatient medications at a discount. By mission and statute, health centers are required to invest every cent of savings from the program into patient care. Not only does the program support access to affordable medications, but it allows health centers to meet the unique needs of their communities, supporting services such as behavioral health and substance use disorder treatment, dental, and OB/GYN care.
What is the 340B landscape for health centers?
The 340B program is critical to sustain access to affordable medications and health center services. Actions by third parties have made it increasingly difficult for health centers to retain savings from the program, which are used to re-invest in patient care. In addition, several major drug manufacturers have imposed restrictions on the shipment of 340B priced medications to contract pharmacies. Even health centers with their own pharmacies rely on contract pharmacies to expand access to medications for their patients.
These actions have placed immense pressure on the 340B programs at health centers and led to increased awareness of the challenges associated with the program at the state and federal levels.
What's next for the SUSTAIN Act?
The 340B program, which is intended to ensure safety net providers can stretch scarce federal resources as far as possible, has grown immensely over time and received enhanced attention from Congress.A bi-partisan group of senators including Senators John Thune (R-SD), Debbie Stabenow (D-MI), Shelly Moore Capito (R-WV), Tammy Baldwin (D-WI), Jerry Moran (R-KS), and Benjamin Cardin (D-MD), have been working since last year to gather information about the 340B program and consider options to ensure the transparency and sustainability.
In summer of 2023, the group put out a Request for Information (RFI) about the program, and, last week, the group released a discussion draft of legislation, the SUSTAIN 340B Act, along with a second RFI focusing on patient definition, contract pharmacies, and child sites.
TPCA is working closely with our partners, including the National Association of Community Health Centers (NACHC) to review the discussion draft and identify the health center specific implications and respond accordingly.
Please continue to follow along with our policy blog for updates!