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Vermont Senator introduces bill to strengthen drug access protections under 340B

Senator Peter Welch announced a bill to curb restrictions on the 340B drug pricing program. Image credit: Bonnie Cash via Getty Images.

A US senator has rebuked drug manufacturers and announced a new bill that would provide vulnerable and low-income populations with cheaper access to medicines.

Vermont Senator Peter Welch criticized manufacturers for their restrictions on the 340B drug pricing program, which provides financial assistance to U.S. hospitals to help communities gain access to prescription drugs amid rising costs.

During the Covid-19 pandemic, several companies have restricted the program and placed a cap on the number of pharmacies 340B providers can use to dispense medications to patients. Welch criticized the companies, saying the changes would disproportionately affect rural states facing a decline in pharmacies.

“Currently, the 340B program is under attack by the pharmaceutical industry, jeopardizing the care of patients who rely on small, rural health care providers for their health care,” Welch said in a Sept. 11 press release.

Section 340B of the Public Health Services Act requires pharmaceutical manufacturers participating in Medicaid to sell outpatient drugs at discounted prices to health care organizations that serve a higher proportion of uninsured and low-income patients.

The 340B program allows hospitals to use their savings to offer free treatments for uninsured patients, free vaccinations and more, according to the American Health Association (AHA). The Health Resources and Services Administration (HRSA) reports that participating hospitals currently save an average of 25 to 50 percent on drug purchases.

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Welch's new bill, the bicameral 340B Pharmaceutical Access To Invest in Essential, Needed Treatments & Support (PATIENTS) Act, takes this point even further by requiring manufacturers to provide 340B rebates to covered organizations, regardless of how and where a drug is dispensed.

This includes dispensing 340B drugs from contract pharmacies to patients. The new law will also prohibit drug manufacturers from setting conditions for the purchase and use of 340B drugs. Under the latest rule, companies will have to pay a fee if they violate the law.

Several organizations have openly expressed their support for the bill, including AHA, Advocates for Community Health, America's Essential Hospitals (AEH), and American Society of Health-System Pharmacists (ASHP).

“As a 340B provider, AIDS Healthcare Foundation (AHF) understands that contract pharmacy restrictions not only deny nonprofit organizations important savings, but also undermine their successful care models,” AHF said in a Sept. 11 statement.

In response to the release of a draft bill in March, the AHA denounced the “outrageous behavior” of pharmaceutical companies, insurers and pharmacy benefit managers.

“Their unlawful and harmful practices have collectively undermined the 340B program and harmed patient care,” the organization wrote.


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