Grange: Bipartisan legislation to improve drug discount program good first step

WASHINGTON, D.C. (JANUARY 11, 2018) — The National Grange sent a statement to Congress on Friday, Jan. 11, supporting legislation that will halt a program created for good benefits is producing bad results.

The bipartisan legislation, H.R. 4710, penned by Reps. Larry Buchson (R-IN) and Scott Peters (D-CA) temporally freezes the 340B program, created by Congress in 1992 that requires drug manufacturers to provide discounts of 30 to 60 percent on prescription drugs to Disproportionate Share Hospitals (DSHs). DSHs are clinics and hospitals that serve a greater than average amount of underserved, uninsured and needy patients who qualify for reduced prescription drug costs.

While the drug manufacturers were required to offer savings on medicines supplied to DSHs, many of these hospitals and clinics are not passing these savings on to patients. Multiple studies show that as DSH hospital revenue has gone up, charity care has gone way down, which was not the intent of the legislation and hurts disadvantaged individuals who require care.

H.R. 4710 puts in place reporting requirements on drug data, requires disclosure of profits from 340B, and asks facilities to show 340B discounts are being used to help patients.

National Grange President Betsy E. Huber urged Congress to pass H.R. 4710, which she called in her statement, “a good first step in addressing the major challenges to the program’s integrity”.

The following is the full text of the statement was sent by Betsy E. Huber, President of the National Grange, to Congress on Friday, January 11, regarding H.R. 4710, the 340B Protecting Access for the Underserved and Safety-Net Entities Act

The National Grange appreciates the bipartisan legislation introduced by Representatives Larry Bucshon (R-IN) and Scott Peters (D-CA) to improve the 340B drug discount program. H.R. 4710 is a good first step in addressing the major challenges to the program’s integrity. The legislation will pause the rapid expansion of 340B by temporarily freezing the number of large disproportionate share hospitals (DSH) participating in the program and will improve oversight as it increases program accountability. At the same time, the bill allows truly vulnerable rural hospitals to continue participating with no changes.

The 340B program was established by Congress Many of these large DSH hospitals have been accused of misusing 340B patient discounts to pad their bottom line, consolidate care and force independent physician practices to close.

We hope members of Congress will come together to pass this critical legislation without delay to put 340B back on track.