The AAMC on Aug. 28 submitted comments (PDF) on the discussion draft legislation of the 340B for Patients Act. The legislation, first unveiled in June by Senate Health, Education, Labor, and Pensions (HELP) Committee Chair Bill Cassidy, MD (R-La.), contains several policies that would limit the value of the 340B program for participating hospitals [refer to Washington Highlights, June 26].
In its comments, the association expressed concern with several aspects of the legislation, highlighting the specific impacts of these proposals on academic health systems and teaching hospitals. Notably, the bill would allow pharmaceutical manufacturers to deliver 340B pricing as a retrospective rebate, rather than an upfront discount — an idea that the AAMC has consistently opposed due its associated administrative burden and cash flow challenges [refer to Washington Highlights, April 24]. Furthermore, the AAMC opposed Sen. Cassidy's proposal to restrict certain 340B hospitals' ability to partner with contract pharmacies to provide drugs to the patients they serve, emphasizing that such restrictions are incompatible with the nature of care delivery in a large academic health system, where patients may travel many miles to receive care. Finally, the association provided targeted feedback to improve the legislation's proposed definition of a "340B patient," encouraging the senator to align this definition with guidance provided by the American Medical Association.
Cassidy's term will conclude Jan. 3, 2027, at the end of this Congress. It is unknown whether another senator will champion this proposal next year.
- Washington Highlights