Bipartisan Members of Congress Introduce Legislation to Help Safety Net Hospitals Reduce Drug Costs

Bipartisan members of the Senate and House introduced legislation in early June that would make it easier for hospitals participating in the Public Health Service 340B drug discount program to negotiate lower prices on inpatient pharmaceuticals. The Safety Net Hospital Pharmacy Access Act (S. 1195 and H.R. 2409) would clarify that inpatient drug prices purchased by the hospitals in the 340B program are exempt from the federal government’s “best price” calculations. Hospitals qualify for the 340B program due to their large indigent patient population. While these hospitals access significant discounts on outpatient pharmaceuticals, they pay 20-25 percent more for inpatient drugs due to the government’s current interpretation of the Medicaid law. This legislation would clarify the law and enable hospitals to negotiate lower prices with pharmaceutical manufacturers.

For a copy of S. 1195, introduced by Senators Kyl (R-AZ) and Bingaman (D-NM), click HERE.

Click HERE for Senator Kyl's speech introducing the bill

For a copy of H.R. 2409, introduced by Reps. Shadegg (R-AZ) and Markey (D-MA), go HERE.

For the PHPC press release, go HERE.