The Preserving Rules Ordered for the Entities Covered Through (PROTECT) 340B would block health insurers and pharmacy benefit managers from treating 340B pharmacies differently.
The legislation, reintroduced today by U.S. Reps. Abigail Spanberger of Virgina and Dusty Johnson of South Dakota, would prohibit insurers and pharmacy benefit managers from hurting hospitals and clinics that participate in the federal 340B Drug Pricing Program.
The bipartisan bill is a response to concerns from healthcare providers in Virginia, South Dakota and across the United States, especially in rural areas, that have seen their access to the program threatened by PBMs, insurers and pharmaceutical companies.
“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,” Spanberger said. “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 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 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,” Johnson said. “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.”
340B Health President & CEO Maureen Testoni said 340B hospitals applaud Spanberger for her strong leadership.
“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,” Testoni said.
Dr. Marlon Levy, Interim Senior Vice President, VCU Health Sciences; Interim CEO, VCU Health, said his organization cannot thank Spanberger enough.
“VCU Health is the Commonwealth’s largest safety net provider. The 340B program makes a real, tangible difference in our patients’ lives by allowing us to provide more than 16,700 free or deeply discounted drugs annually to those with the most need. Beyond that, we use 340B savings to improve patients’ health in our hospitals and our communities through programs like our coordinated community care model, Virginia Supportive Housing Partnership, Medical-Legal Partnership Program, and more. The PROTECT 340B Act will protect our patients by ensuring their continued access to affordable prescriptions and community programs,” Levy said.
Paula Tomko is CEO of Central Virginia Health Services. She said CVHS ha been a good steward of 340B and reinvested savings back into patients and communities.
“Without these savings, we could not provide comprehensive dental and behavioral health services, have expanded hours or offer care coordination to help those with the least access to receive resources needed to improve their healthcare. The 340B program places our patients in rural and disenfranchised communities closer to health equity. We have seen patients lower their A1Cs, have increased adherence to medication therapies, and in some of our Hepatitis B patients seen the disease be undetected – all because of the access to discounted medications and savings from the 340B program. Community health centers across the country will face catastrophic consequences and cease to exist in their current capacity if the 340B program for health centers is not protected. We hope that Congress will come together in support of this legislation to protect community health centers and our patients,” Tomko said.
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Rebecca Barnabi
