Olympia – A bill to protect prescription drug discounts under the 340b program was voted out of the House Committee on Health Care & Wellness, Wednesday.
Senate Bill 5981, sponsored by Sen. Annette Cleveland (D-Vancouver), would prohibit manufacturers or third parties acting on behalf of a manufacturer from restricting the acquisition of drugs under the 340B Drug Pricing Program (340B program).
The 340B Program was created by Congress in 1992 to allow certain health care safety net providers to access outpatient drugs at a discounted price. Under the program, the Secretary of Health and Human Services enter into agreements with drug manufacturers that participate in Medicaid, requiring the manufacturer to offer to sell covered drugs to covered entities – such as federally qualified health centers, critical access hospitals, and other entities caring for low-income and rural populations – at a capped price.
Covered entities and drug manufacturers participating in the 340B Program would be required to submit annual informative reports to the Health Care Authority. This information would include financial information related to the program, including costs and savings. The savings these entities receive are spent on other supporting programs for low-income and uninsured patients.
“Congress decided 34 years ago, when 340B passed, that drug companies have a responsibility to partner with state and federal government to ensure that our safety net was funded,” Cleveland said. “Over time, our safety net needs have grown but their responsibility has not shrunk. If drug companies succeed in scaling back their contributions, taxpayers will be forced to pick up the bill. I am committed to fighting hard to maintain your access to drug discounts.”
The bill would prohibit manufacturers or third parties acting on their behalf from requiring a covered entity to submit data as a condition for acquiring drugs under the 340B program. Enforcement of the law would be ensured through a covered entities right to file civil action against manufacturers or third parties on their behalf and the Attorney General would be empowered to enforce the bill if a violation is deemed to affect the public interest or constitute a violation of the Consumer Protection Act.
“Access to affordable prescription drugs remains a critical health care priority. Passage of this bill will help maintain these important drug discounts in our state.” Cleveland said.
Follow the bill’s progress here.
