Senate HELP Committee Chairman Bill Cassidy (R-LA) has released a discussion draft proposing significant changes to the 340B program. Although the draft is not yet formal legislation, it gives stakeholders an opportunity to provide feedback before legislation is introduced. The Senate’s Gang of Six is also working on a separate 340B legislative package. We don’t expect legislation to advance this year.

While AHPA is reviewing the proposal to assess its potential impact, several provisions in the draft raise significant concerns, including proposals that would:

• Restrict eligibility for certain hospital child sites
• Narrow the definition of a 340B patient, potentially reducing the number of patients for whom covered entities may use 340B-priced medications
• Authorize a rebate-based model for 340B discounts
• Permit only limited use of contract pharmacy arrangements
• Expand hospital reporting and transparency requirements
• Require hospitals to implement a sliding fee scale for patient out-of-pocket costs on 340B medications

These proposed changes could limit the flexibility hospitals rely on to support access to care, particularly for vulnerable and underserved patients.

Chairman Cassidy has requested stakeholder feedback by Aug. 28. Given the limited congressional calendar and competing legislative priorities, the path forward for any 340B reform package remains uncertain. AHPA will continue monitoring this issue closely and advocating for policies that preserve the ability of hospitals to serve patients and communities effectively.