House Reintroduces Legislation to Protect 340 Program

Published: April 7, 2023

On April 6, the Preserving Rules Ordered for the Entities Covered Through (PROTECT) 340B Act was reintroduced by Representatives Abigail Spanberger (D-VA) and Dusty Johnson (R-SD).  The PROTECT 340B Act is bipartisan legislation that would prohibit insurers and pharmacy benefit managers (PBMs) from harming hospitals and health systems that participate in the 340B Drug Pricing Program.

Specifically, the bill would prohibit insurers and PBMs from discriminating against 340B providers or their contract pharmacies on the basis of their 340B status. This includes discrimination related to reimbursement, participation in standard or preferred networks, and inventory management systems. The bill would also prevent PBMs and insurers from interfering with a patient’s choice to use a 340B pharmacy.

“The PROTECT 340B Act introduced by Reps. Spanberger and Johnson will enable America’s hospitals to continue to provide critical care to patients in low-income and underserved areas without the threat of discrimination from PBMs and insurers,” said Tom Kraus, ASHP vice president of government relations. “The 340B program is integral to hospitals' ability to provide healthcare services to uninsured and underinsured patients, so protecting the program means protecting patients.”

You can learn more about the PROTECT 340B Act in Rep. Spanberger’s press release. ASHP applauds the reintroduction of this legislation and will continue to advocate for protection of the 340B program.


Posted April 7, 2023

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