July 28, 2011—Bipartisan legislation was introduced in the U.S. House late yesterday to expand 340B drug discounts to the inpatient setting and lift the restriction on rural and free-standing cancer hospitals’ access to 340B pricing on orphan drugs.
The 340B Improvement Act of 2011 (H.R. 2674), sponsored by Reps. Cathy McMorris Rodgers (R-Wash.), Bobby Rush (D-Ill.), Jo Ann Emerson (R-Mo.) and five others, would also prohibit states from collecting National Drug Codes (NDCs) for physician-administered drugs purchased by 340B hospitals and make it easier for rural and children’s hospitals to enroll satellite facilities in 340B. Companion legislation is expected to be introduced in the Senate soon.
“At a time when our nation’s hospitals are struggling to treat the growing number of uninsured and underinsured patients, we need smart, common-sense solutions to make health care more affordable and increase the quality of care,” McMorris Rodgers said. “The 340B drug discount program is part of that solution because it already saves the federal and state governments precious health care dollars. Our bill will extend that program, benefiting over 30 safety-net hospitals in Washington State and hundreds throughout the country.”
The Affordable Care Act included language to extend 340B to inpatient drugs and the expansion was actually federal law for several days. Congress however passed a budget reconciliation bill soon thereafter that repealed the inpatient provision and also prohibited children’s hospitals and rural and cancer hospitals just added to 340B from buying orphan drugs at 340B-discounted prices.
Congress lifted the restriction for children’s hospitals last December. Ending the ban for rural and cancer hospitals and reviving inpatient discounts are top priorities for groups representing hospitals in the 340B program.
The 340B bill’s immediate prospects are unclear. According to the Los Angeles Times, Congress passed just 16 bills between January and the end of May, compared with 50 during that period last year. 340B hospitals nevertheless remain hopeful that Congress will ultimately pass the measure since it would reduce costs for both the Medicaid and Medicare programs.
“While the 340B program is already important to our hospitals, this legislation would make critical improvements that will enable our membership to continue their charitable mission,” said Ted Slafsky, Executive Director of Safety Net Hospitals for Pharmaceutical Access (SNHPA), which represents more than 700 hospitals in the program.
“We are pleased that a bipartisan group of lawmakers have introduced a bill that would not only help our hospitals and patients but reduce government expenditures,” added SNHPA President and General Counsel William von Oehsen.