Bill Addressing Federal Drug Program On Governor Lee’s Desk

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The Center Square [By Kim Jarrett] –

It’s up to Tennessee Gov. Bill Lee to decide if a bill that would prevent manufacturers from “imposing any restrictions, prohibitions, discriminating against, or otherwise limiting the acquisition of a 340B drug” becomes law.

The House and Senate passed Senate Bill 1414 over objections from health care groups that the program benefits large not-for-profit hospitals.

Five Republicans voted “no” in the Senate. Memphis Democratic Reps. Justin Pearson and G.A. Hardaway, Rep. Vincent Dixie, D-Nashville and Rep. Timothy Hill, R-Blountville, were the only “no” votes in the House of Representatives.

The 340B Drug Pricing Program was established more than 30 years ago to create a discount program in not-for-profit hospitals that serve low-income patients.

An analysis released by the National Alliance of Healthcare Purchaser Coalitions this month said commercial drug prices were 7% higher at large hospitals that participated in the program than those that did not, and outpatient procedures were nearly 20% higher, the report said.

“This study adds to the large and growing body of evidence that 340B is often a shell game that has a substantial impact on commercial healthcare prices,” said Shawn Gremminger, president and CEO of the National Alliance of Healthcare Purchaser Coalitions. “While the analysis does not imply causation, it shows an overwhelming correlation between 340B eligibility and higher costs for employers and other health care purchasers and working families.”

Tennessee’s legislation is similar to bills passed by other states in the past two years. It does have a caveat that bans health care entities from using the savings “in a manner” that follows laws regarding immigration, abortion and transgender care for minors.