Grange urges passage of bill to fix discount drug program
WASHINGTON, D.C. (JANUARY 22, 2018) — The National Grange sent a statement to Senate on Monday, Jan. 11, supporting legislation that will provide added reforms to an essential program for rural health.
The bill, S. 2312, submitted by Louisiana Senator Bill Cassidy will both alter the hospital eligibility and increase oversight by the federal Health Resources and Services Administration (HRSA) for the 340B program. The 340B program, established in 1992 by Congress requires drug manufacturers to provide discounts of 30 to 60 percent on prescription drugs to Disproportionate Share Hospitals (DSHs), 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.
Most rural and small hospitals are classified as DSHs, making this issue a priority for the National Grange, which just celebrated its 150th Anniversary as America’s premier nonpartisan rural and agricultural advocate.
National Grange President Betsy E. Huber urged Congress to pass S. 2312, which she called in her statement, “important next step in improving the 340B drug discount program.”
The following is the full text of the statement was sent by Betsy E. Huber, President of the National Grange, to the U.S. Senate on Monday, January 22, regarding S. 2312, a Bill to Provide a Moratorium on Registration of New Non-Rural Section 340B Hospitals
The National Grange thanks Senator Bill Cassidy (R-LA) for introducing S. 2312 to reform the 340B drug discount program. Senator Cassidy’s bill is an important first step in addressing two of the major challenges to the 340B program’s integrity. This legislation will intensify the oversight capabilities of the Health Resources and Services Administration (HRSA) and hold hospitals accountable through a change in hospital eligibility criteria.
This legislation ensures the 340B program continues to help low-income Americans living in rural areas afford the medications they need. This bill also preserves rural hospitals’ ability to improve public health outcomes for their communities.
We believe Senator Cassidy’s legislation will serve as an important next step in improving the 340B drug discount program. We hope all members of the Senate will come together to pass S. 2312 and put 340B back on track.
