Johnson, Spanberger Introduce Bipartisan Bill to Protect 340B Program, Prevent Higher Drug Prices

Washington, D.C. – Today, U.S. Representatives Dusty Johnson (R-S.D.) and Abigail Spanberger (D-VA-07) introduced a bipartisan bill that would prohibit health insurers and PBMs from discriminating against 340B Drug Pricing Program providers or their contract pharmacies on the basis of their status as providers or pharmacies that dispense 340B drugs.

The Preserving Rules Ordered for the Entities Covered Through (PROTECT) 340B Act addresses concerns from healthcare providers in South Dakota and across the country — particularly in rural areas — that have seen their access to the program threatened bypharmacy benefit managers (PBMs), insurers, and pharmaceutical companies. Specifically, the Spanberger-Johnson legislation would prevent companies from treating 340B providers differently with regards to reimbursement of fees, participation in standard or preferred networks, or inventory management systems — and it would block them from interfering in a patient’s choice to receive drugs from a 340B pharmacy.

“340B is an essential program for rural and low-income hospitals and patients,” said Johnson.  “South Dakotans rely on this program to access affordable drugs and medicines they need. The PROTECT 340B Act will ensure the quality of care for communities that need it.”

“The 340B Program lowers prescription drug costs and saves money for seniors and families, especially those in rural and underserved communities. But in recent years, we’ve seen for-profit insurance companies and the shadowy middlemen of the pharmaceutical industry — known as pharmacy benefit managers — undermine these discounts, target 340B providers, and threaten the very survival of this program,” said Spanberger. “The PROTECT 340B Act would hold these actors accountable for trying to take away the savings of American consumers. I want to thank my colleague Congressman Johnson for his partnership on this issue, and we’ll keep working to level the playing field for 340B pharmacies and providers, maintain access to discounted medications, and protect the financial security of patients in Virginia and across the country.”

"The Community HealthCare Association of the Dakotas appreciates Representative Johnson’s strong support for the 340B program and his leadership in introducing the Protect 340B Act. The 340B program enables community health centers across the state to provide life-saving medications to our patients at lower costs. As prescription drug costs put pressure on the budgets of so many South Dakota families, Representative Johnson is responding with solutions that will make a difference,” said Shelly Ten Napel, CEO of Community HealthCare Association of the Dakotas.

“Avera Health commends Representative Johnson for his efforts to protect 340B hospitals and patients who rely on them for care. Avera is a nonprofit health system with 30 hospitals in the 340B program serving patients in need in South Dakota, Iowa, Minnesota and Nebraska. Without access to our critical, specialized services and support funded by 340B, many patients unable to travel to reach the next nearest healthcare facility offering such care would be negatively impacted. This bipartisan legislation is important because it would help ensure 340B resources are directed towards patients in need of this comprehensive care in their communities. On behalf of those patients, we thank these 340B champions for their leadership on this issue,” said Melissa Goff, Vice President of Pharmacy at Avera.

“340B hospitals applaud Representatives Johnson and Spanberger for their strong leadership to protect safety-net providers from discriminatory payment behavior by pharmacy benefit managers and insurance companies. 340B savings provide crucial resources to hospitals and other providers caring for patients with low incomes and those living in rural communities. PBMs and payers undermine that investment in patient care when they pay less to covered entities based solely on their participation in 340B. This bipartisan legislation would ensure that those 340B dollars go to care for patients of the health care safety net as Congress intended and not into more profits for PBMs and insurers,” said Maureen Testoni, 340B Health President and CEO.

“Essential hospitals thank Reps. Johnson and Spanberger for introducing the PROTECT 340B Act. The 340B program is vital to millions of low-income patients and our nation’s health care safety net. We call on Congress to defend the 340B program against drug industry attacks by passing this important legislation,” said Dr. Bruce Siegel, President & CEO, America’s Essential Hospitals.

“With sixty percent of Sanford Health patients living in rural areas, 340B provides crucial support. Sanford Health relies on 340B to stretch scarce healthcare dollars, increasing our ability to support critical health services in our communities. Protection of the program allows us to maintain access and invest in care delivery in our communities. We are thankful for Representative Johnson’s support to this essential program,” said Corey Brown, System Vice President Government Relations, Sanford.

“The South Dakota Association of Healthcare Organizations appreciates Congressman Johnson and his efforts in supporting protections for hospitals and providers through the PROTECT 340B Act.  This proposed legislation, should it become law will assure access to healthcare Services in South Dakota, benefiting patients and our members statewide,” said Tim Rave, President and CEO, SDAHO.

Click here to read the full bill text.

Background:

The 340B Drug Pricing Program was enacted by Congress in 1992 with bipartisan support and is overseen by the U.S. Department of Health and Human Services (HHS). The program requires that pharmaceutical companies give safety-net and rural healthcare providers discounts on their drugs, in exchange for having their drugs covered by Medicaid.

The program has a demonstrated record of protecting patients who are low-income, live in underserved communities, or suffer from serious chronic illnesses from the threat of skyrocketing prices for the drugs they depend on the most.

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