U.S. Rep. John Joyce (R-PA) on Monday cosponsored a bill to update the 340B Drug Pricing Program, a federal initiative created in 1992 that requires pharmaceutical manufacturers to provide significant outpatient drug discounts to eligible healthcare organizations that serve vulnerable, low-income, and uninsured people.
If enacted, the SECURE 340B Act, H.R. 9599, which is sponsored by U.S. Rep. Scott Peters (D-CA), would be the first-ever comprehensive modernization of the program since its creation 34 years ago.
“Since its establishment, the 340B program has served as a critical lifeline for low-income patients to access lifesaving medications,” Rep. Joyce said. “The statute has long needed additional clarity to reflect the way the program operates today and ensure that access to treatment remains available to patients most in need and the healthcare facilities that serve them.”
Despite the expansion and changes in administration of the program, statutory language has not been meaningfully modernized, and several recent lawsuits have highlighted the need to clarify the boundaries of the program.
Without congressional action, the long-term stability of the program is in jeopardy, according to a bill summary provided by the lawmakers.
H.R. 9599 would update statutory language to address misuse of the drug pricing program through clarified eligibility standards and guardrails to prevent further abuse, the summary says.
“This bill, a bipartisan solution that I am proud to have worked on with my colleague Rep. Scott Peters, seeks to close loopholes that have compromised the integrity of the program while ensuring a stable path forward for the many hospitals and patients in my district that rely on it,” added Rep. Joyce.
Rep. Peters agreed, noting that the bill would help redirect the program back to its mission, “stop the legal chaos that plagues the program today, and puts in place the kind of transparency and accountability that will keep 340B strong for decades to come.”