House Energy and Commerce subcommittee holds hearing on 340B oversight; AHA urges protection of program, highlighting its value to hospitals, with 340B hospitals providing $84.4 billion in community benefits in 2020.

The House Energy and Commerce Oversight and Investigations subcommittee June 4 hosted a hearing to discuss oversight of the 340B Drug Pricing Program. AHA sent a letter to the subcommittee for the hearing, urging Congress to protect the program and highlighted its value to hospitals and health systems.

"Hospitals provided nearly $42 billion in uncompensated care in 2019 alone, of which 340B hospitals roughly made up 68% of that number," AHA wrote. "In addition, in 2020, 340B hospitals provided $84.4 billion in total community benefits, a nearly 25% increase from the prior year. 340B hospitals are providing these high levels of uncompensated care and community benefits despite operating on razor-thin margins. And the community benefit efforts are only increasing: a recent study found that between 2017 and 2020, the growth in community benefits provided by 340B hospitals far outweighed the growth in their program savings."

The AHA also discussed efforts by drug companies to decrease the scope of 340B for their benefit, while reducing such for hospitals and patients. The AHA wrote in support of the 340B PATIENTS Act, legislation that would strengthen the 340B program by codifying 340B providers’ ability to use contract pharmacies to dispense 340B discounted drugs. The association strongly opposes the 340B Affording Care for Communities and Ensuring a Strong Safety-net (340B ACCESS) Act, legislation that would limit hospital eligibility for the program, impose conditions of participation, create compliance requirements and limit states' power in regulating drug distribution.