Rep. Matsui Introduces AHA-supported 340B Bill

Rep. Doris Matsui (D-CA) today introduced an AHA-supported bill that would make changes to the 340B drug savings program, including overturning last year’s significant Medicare payment reduction for many hospitals in the program and adding program integrity requirements for drug manufacturers participating in the program. “Hospitals and clinics doing life-saving work rely on the 340B program to help them provide inclusive and affordable care in their communities,” Matsui said. “This legislation makes clear the importance of preserving the program so safety net providers can continue to serve low-income and vulnerable patients, while expanding it to help address the opioid crisis.” Specifically, the Stretching Entity Resources for Vulnerable (SERV) Communities Act would overturn the nearly 30% Medicare payment cut that went into effect Jan. 1 for certain hospitals for outpatient drugs purchased under the 340B program. Among other provisions, the bill would require implementation of the long delayed 340B ceiling price calculation methodology and application of civil monetary penalties for manufacturers’ violations of the ceiling price.