Pharmaceutical manufacturers have been called out by a US Senator who has announced a new bill to ensure vulnerable and low-income communities are provided more affordable drug access.
Peter Welch, the senator for Vermont, criticised manufacturers for placing restrictions on the 340B drug pricing programme which provides financial help to US hospitals to allow communities to access prescription drugs amid rising costs.
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During the Covid-19 pandemic, several companies placed restrictions on the programme, putting a threshold on the number of pharmacies that 340B providers can use to dispense medications to patients. Welch called out the companies saying that the changes would disproportionately impact rural states facing a decline in pharmacies.
“Right now, the 340B programme is under attack from big pharma, endangering care for patients who rely on small rural healthcare providers for their healthcare needs,” said Welch in an 11 September press release.
Section 340B of the Public Health Services Act stipulates that pharmaceutical manufacturers participating in Medicaid must sell outpatient drugs at discounted prices to healthcare organisations taking on a higher proportion of uninsured and low-income patients.
The 340B programme allows hospitals to use savings to offer free care for uninsured patients, free vaccinations and more, as per the American Health Association (AHA). The Health Resources and Services Administration (HRSA) reports that enrolled hospitals currently achieve average savings of 25% – 50% in pharmaceutical purchases.
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By GlobalDataWelch’s new bill, the bicameral 340B Pharmaceutical Access To Invest in Essential, Needed Treatments & Support (PATIENTS) Act, will expand on this by placing a requirement on manufacturers to provide 340B discount prices to organisations covered under the programme, regardless of the manner or location in which a drug is dispensed.
This includes the dispensation of 340B drugs from contract pharmacies to patients. The new act will also block drug manufacturers from setting conditions for covered entities to purchase and use 340B drugs. Under the latest ruling, companies will have to pay a fee if they violate the act.
Several organisations have openly expressed their backing of the bill including AHA, Advocates for Community Health, America’s Essential Hospitals (AEH), American Society of Health-System Pharmacists (ASHP).
“As a 340B provider, AIDS Healthcare Foundation (AHF) understands how contract pharmacy restrictions not only deny nonprofits vital savings but interfere with their successful models of care,” said the AHF in an 11 September statement.
In response to the release of a draft bill in March, the AHA called out the “egregious behaviour” of drug companies, insurers and pharmacy benefit managers.
“Their unlawful and pernicious practices have collectively undermined the 340B programme and harmed patient care”, wrote the organisation.
