FDAnews Drug Daily Bulletin
Pharmaceuticals / Regulatory Affairs

Hospital CEOs Warn Congress: Don’t Cut 340B

Oct. 12, 2018

Hundreds of hospital CEOs urged congressional leaders not to tighten eligibility for 340B drug discounts, saying proposed cuts in the program would limit their ability to serve patients and would have little impact on drug prices.

Under the 340B program, drugmakers are required to provide drug discounts to eligible hospital and healthcare providers with a disproportionately low-income patient population.

Congress is considering legislation that would narrow the eligibility requirements for hospitals. The Protecting Safety-Net 340B Hospitals Act, sponsored by Rep. Joe Barton (R-Texas), would raise the minimum Medicare reimbursement a hospital must receive to make the cut. The nonprofit 340B Health predicts the change would disqualify 51 percent of currently-eligible hospitals.

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