340B Bill Introduced in the House to Close Loophole

340B Bill Introduced in the House to Close Loophole

Reps. Peter Welch (D-VT) and Gregg Harper (R-MS) introduced a bill designed to close a loophole in the 340B drug program that the lawmakers say unfairly allows drug companies to deny legally mandated discounts on orphan drugs to safety-net hospitals and other clinics serving a disproportionate share of low-income patients. The bill would permit an exclusion on orphan drugs only in instances in which they’re being used to treat a rare disease — if hospitals are purchasing the drug to treat a more common disease, drug makers would need to provide the 340B discounts.