U.S. Reps. David McKinley (R-W.Va.) and Abigail Spanberger’s (D-Va.) bipartisan PROTECT 340B Act (H.R. 4390) can “resolve two of the most intractable challenges in the 340B program in one fell swoop” while satisfying both covered entities and drug manufacturers, 340B Report Publisher and CEO Ted Slafsky says in his latest column for Omnicell.
Slafsky says the two perennial challenges are (1) payer and pharmacy benefit manager contract terms that transfer 340B savings from covered entities to payers and PBMs, and (2) drug manufacturer exposure to duplicate 340B discounts and Medicaid rebates on the same drugs.
The PROTECT 340B Act solves both issues, according to Slafsky. It would bar discriminatory reimbursement practices by commercial insurers and PBMs. It would also require the U.S. Department of Health and Human Services (HHS) to contract with a neutral third party that would act as a claims data clearinghouse to identify and eliminate duplicate 340B/Medicaid discounts.
“The bill builds on the momentum at the state level where 16 states have passed various anti-discrimination bills since 2019,” Slafsky writes. “The federal bill also provides protection to 340B providers in the Medicare Parts C and D markets, which can’t be addressed at the state level.”
All national 340B provider organizations have endorsed the bill and state Medicaid directors have given it a warm welcome, Slafsky notes. “Hopefully, pharmaceutical manufacturers will also support this commonsense legislation and help get this through the finish line,” he concludes.
You can read the complete column here.