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Protecting 340B Drug Discount Program: Ensuring Fair Treatment for Healthcare Providers

This bill aims to protect the 340B drug discount program, which helps hospitals and clinics provide affordable medications to low-income patients. It prevents discrimination against these healthcare providers by insurance companies and pharmacy benefit managers, ensuring patients continue to access affordable drugs. The bill introduces financial penalties for violations and streamlines oversight to prevent duplicate discounts.
Key points
Prohibition of Discrimination: Insurance companies and pharmacy benefit managers cannot treat healthcare facilities and pharmacies participating in the 340B program unfairly.
Equal Payment Terms: 340B facilities must receive the same reimbursement rates for drugs as other pharmacies, without additional fees or restrictions.
Penalties for Violations: Pharmacy benefit managers violating the new rules can face fines of up to $5,000 per day.
Preventing Duplicate Discounts: A system is established to ensure that drugs covered by the 340B program are not simultaneously subject to other Medicaid discounts.
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Additional Information
Print number: 117_HR_4390
Sponsor: Rep. McKinley, David B. [R-WV-1]
Process start date: 2021-07-09
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

PROTECT 340B Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_4390.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-07-09.

What are the main provisions?

Key points include:

  • Prohibition of Discrimination: Insurance companies and pharmacy benefit managers cannot treat healthcare facilities and pharmacies participating in the 340B program unfairly.
  • Equal Payment Terms: 340B facilities must receive the same reimbursement rates for drugs as other pharmacies, without additional fees or restrictions.
  • Penalties for Violations: Pharmacy benefit managers violating the new rules can face fines of up to $5,000 per day.
  • Preventing Duplicate Discounts: A system is established to ensure that drugs covered by the 340B program are not simultaneously subject to other Medicaid discounts.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. McKinley, David B. [R-WV-1].

What is the latest detailed status?

The latest detailed status is: Referred to the Subcommittee on Health.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Health