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Washington, D.C. -- Last week, Representative Rosendale introduced the Drug Pricing Transparency and Accountability Act. This bill would hold hospitals accountable to their patients by encouraging financial transparency and tightening the current 340B drug pricing program.

Section 340B of the Public Health Service Act allows certain hospitals and health care providers to obtain substantially discounted drugs from manufacturers. It requires manufacturers who wish to have their drugs covered under Medicaid,  to offer those drugs at a discounted price to hospitals and healthcare providers who participate in the 340B program.

Although the intent of this program is to reduce the price of health care needs for uninsured or lower income citizens, but this has often not been the case. 

In recent years, reports have demonstrated financial abuses by hospitals where patients are not receiving or seeing a discounted price, despite hospitals receiving savings through the 340B drug pricing program. Hospitals often pocket the savings to cover other expenses they have such as expanding medical facilities.

This bill would require hospitals to submit drug claims on all Medicare and Medicaid transactions for 340B users. It would also require that hospitals who accept Medicare and utilize the 340B program include the price they paid for the drugs and revenue made off their sale in their Medicare cost reports, therefore ensuring hospitals pass on their savings from the 340B program rather than pocket it to pay for other operational costs.

The Drug Pricing Transparency and Accountability Act is a common-sense approach to ensure we understand how the 340B program is being utilized properly and to ensure that patients are receiving affordable quality care.

“Hospitals are getting rich at the expense of everyday people,” Representative Rosendale said. “This bill is a common-sense approach to ensure hospitals are using taxpayer-funded programs to benefit those in underserved communities, rather than using those funds to line their own pockets.”