Bi-partisan legislation proposed in late December by Republican Rep. Larry Buschon known as PAUSE (340B Protecting Access for the Undeserved and Safety-net Entities Act) is likely the starting point of a larger conversation around 340B that will occur in 2018. This bill will impose a two-year freeze on new hospital and child site program participants, and establish a set of reporting requirements. The moratorium on new hospitals entering 340B is targeted at Disproportionate Share Hospitals (DSH) eligibility category, or hospitals that qualify by being a Medicare disproportionate hospital. Also affected will be cancer and children’s hospitals intending to participate in the program.

The information reporting requirements will also apply specifically to DHS, children’s, and cancer hospitals, asking for statistics including the number and percentage of individuals who receive 340B drugs, organized by insurance coverage category; aggregate costs and gross reimbursement for 340B drugs; names and vendors that provide services in connection with the 340B program; and government contracts with the hospitals, among other information.

The National Law Review reports that the 340B PAUSE Act has the potential to disrupt and burden program operations for DHS, Cancer, and Children’s hospitals, but it does not incorporate more significant changes to 340B that have been expected for upcoming months. For a more detailed analysis of the impacts of the legislation click here.
340B Health and industry advocates strongly oppose this bill and urge you to contact your senator asking them not to cosponsor the bill. For more information on which senators support this bill and how to contact them, click here.

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