Release: Reps. Auchincloss, Peters, Joyce Unveil Landmark Bill to Improve Discount Drug Pricing Program
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Auchincloss, Peters, Joyce Unveil Landmark Bill to Improve Discount Drug Pricing Program FOR IMMEDIATE RELEASE: Contact: Georgina.Burros@mail.house.gov (Auchincloss) Washington, D.C. — Today, Representatives Jake Auchincloss (D-MA), Scott Peters (D-CA) and Dr. John Joyce (R-PA) introduced the bipartisan Strengthening the Exercise of Controls and Upgrading Requirements for Efficiency (SECURE) in 340B Act , the first-ever comprehensive, bipartisan proposal to modernize the 340B Drug Pricing Program since its creation in 1992. This bill is also co-sponsored by Reps. Nanette Barragán (D-CA) and Dan Crenshaw (R-TX) . “Employees' health premiums are too high, and the growth of the 340B program is one driver of that inflation,” said Congressman Auchincloss. “Instead of pointing fingers, it's time to fix the problems. This bill tackles the hard issues and asks every stakeholder to compromise for the common good.” "For nearly a decade, I’ve fought to protect the 340B program for the safety-net providers and low-income patients in San Diego who depend on it to afford their prescription drugs. I’ve also pushed to make sure those savings actually reach the people for whom they’re intended. This bill does both,” Congressman Peters said. “The SECURE 340B Act closes the loopholes that have allowed the program to drift from its mission, stops the legal chaos that plagues the program today, and puts in place the kind of transparency and accountability that will keep 340B strong for decades to come." “Since its establishment, the 340B program has served as a critical lifeline for low-income patients to access lifesaving medications,” said Congressman John Joyce, M.D. “The statute has long needed additional clarity to reflect the way the program operates today and ensure that access to treatment remains available to patients most in need and the healthcare facilities that serve them. This bill, a bipartisan solution that I am proud to have worked on with my colleague Representative Scott Peters, seeks to close loopholes that have compromised the integrity of the program while ensuring a stable path forward for the many hospitals and patients in my district that rely on it.” The 340B Program, the nation's second-largest federal prescription drug program, was created to help safety-net providers stretch limited resources through discounted drug prices. It allows these providers to purchase outpatient drugs at significantly reduced prices. The discounts have historically been applied upfront at the point of purchase. However, since federal law never defined who qualifies as a 340B “patient,” the program became ambiguous, and was misused. In the absence of a legal “patient” definition, manufacturers attempted their own rebate verification systems. Courts have tried to block these rebate pilot programs, but only on procedural grounds. To this day, the federal government still has no uniform way to prevent discounted medicines from going to ineligible patients or duplicate discounts, or to validate pricing data across federal programs. The SECURE 340B Act addresses these gaps. It pauses manufacturer rebate models for fou
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