The House Energy and Commerce Subcommittee on Oversight and Investigations today held a hearing examining how covered entities use the 340B Drug Pricing Program. Established by Congress in 1992, the program mandates that drug manufacturers provide outpatient drugs to eligible health care organizations at reduced prices to remain eligible for reimbursements through entitlement programs such as Medicaid and Medicare. Witnesses at the hearing included hospital, health center and HIV care providers, who shared how the 340B program benefits the patients and communities they serve. “For 25 years, the 340B Drug Pricing Program has been critical in helping hospitals stretch scarce federal resources to expand and improve access to lifesaving prescription drugs and comprehensive health for our nation’s most vulnerable patients,” AHA Executive Vice President Tom Nickels said, commenting on the hearing. “This program is as important as ever given the skyrocketing prescription drug price increases that have presented hospitals and their patients with remarkable challenges. Additionally, the 340B program constitutes less than 2.8% of the $457 billion in annual drug purchases made in the U.S., and does not cost the government or taxpayers a single penny. For all these reasons, America’s hospitals and health systems will continue to advocate for this vitally important program that helps improve patient care in communities across the country.”

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