WEEKLY UPDATE: 02/20/25
The 340B drug pricing program allows hospitals and other healthcare providers like community health centers to stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.
It is critical that stakeholders work together to preserve the 340B program and protect the free and reduced-cost care and access provided by Connecticut hospitals; not add more burdens to 340B hospitals and covered entities.
That’s why hospitals are opposing SB 6097, An Act Concerning Prescription Drug Discount Transparency. The Connecticut Hospital Association (CHA) and multiple hospitals across the state testified against the bill at a public hearing today. The bill seeks impractical reporting to the state government on a federally regulated program for no identified public policy purpose. This proposed reporting is unnecessary, unworkable, burdensome, and will add to the costs of providing care by hospitals and pharmacies.
The purpose of the federal 340B program is for covered entities to use the program broadly to reach more eligible patients and offer more comprehensive services.
The program requires pharmaceutical manufacturers participating in Medicaid to sell outpatient drugs at discounted prices to qualifying healthcare organizations. The savings derived from the 340B program — meaning the difference between the discounted price at which covered entities are able to purchase 340B drugs and the non-discounted costs a covered entity would otherwise incur — supports vital care community contributions.
In Connecticut, hospitals that are eligible for the federal 340B program qualify by meeting a disproportionate share hospital percentage. Meaning, these hospitals are treating a disproportionately high percentage of low-income or uninsured patients for whom hospitals subsidize care.
HB 6097 would add unnecessary burden to these 340B hospitals with no benefit to patients.
Click here to learn more about rising pharmaceutical costs impacting hospitals and the importance of preserving the 340B drug pricing program.
Click here to read CHA’s testimony.
