Congress created the 340B Drug Discount Program in 1992 through the Veteran's Health Care Act (P.L. 102-585) (now Section 340B(a)(4) of the Public Health Service Act, or just '340B') to enable health care providers that serve low-income and uninsured patients to purchase drugs at lower prices.
The Pacific Research Institute has released a study which exposes the underlying financial fraud of the 340B Program, which has now become a huge source of unearned profits to rapacious health care providers.
The Michigan Senate just passed SB 94, which mandates drug suppliers continue to participate in the 340B Drug Discount Program:
https://www.mha.org/newsroom/senate-passes-340b-hospital-protections-imlc-clears-house/
Senate Passes 340B Hospital Protections & IMLC Clears House
March 7, 2025The Michigan Senate passed legislation that protects 340B hospitals with bipartisan support while the Michigan House of Representations voted through legislation that removes the sunset on the Interstate Medical Licensure Compact (IMLC) during the week of March 3.
Following successful reporting from the Senate Oversight Committee, the full Senate took swift action on Senate Bill (SB) 94, sponsored by Sen. Sam Singh (D-East Lansing). The MHA-supported legislation passed the Senate 33-3, with overwhelming bipartisan support, on March 6, reflecting the Senate’s commitment to protecting access to care and the 340B program. The Senate paired this legislation with SB 95, sponsored by Sen. Jonathan Lindsey (R-Allen), which requires hospital compliance with federal cost transparency laws.
SB 94 safeguards the 340B program in Michigan, ensuring cost savings and preserving access to affordable healthcare services in both urban and rural Michigan communities. Further, this legislation adds first of its kind pharmaceutical manufacturer transparency requirements, making Michigan’s legislation the strongest in the nation.
The legislation will now be sent to the House of Representatives for further action. The MHA continues to advocate for the 340B program and support Michigan hospitals’ efforts to expand access to quality, community-based care. Members are encouraged to use the MHA 340B Action Alert to contact their lawmakers in support of this legislation.
In addition, House Bill (HB) 4032, sponsored by Rep. Rylee Linting (R-Grosse Ile), passed the full House 106-1 on March 6. The legislation eliminates the sunset on the interstate medical licensure compact, which streamlines the licensing process and allows physicians licensed in one state to practice in multiple, participating states.
By removing additional licensing requirements for physicians seeking to practice across state lines, patients experience increased access to care, especially in rural and underserved areas, by physicians included in the compact. States involved in the compact can share disciplinary and investigative information through the state medical board to strengthen public protection for patients and the program. Michigan’s participation in the compact is currently set to expire March 28, 2025. The MHA supports this legislation and is working quickly with lawmakers to move it through the legislative process before the compact’s current expiration date.
Further information at NEW STUDY: 340B Providers Reap Big Profits, Should Be Reformed to Ensure At-Risk Patients Receive Affordable Care
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