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Select a bill that has been proposed (not one that has been enacted) using the congressional websites provided in the Learning Resources.
Based on the health-related bill (proposed, not enacted) you selected, complete the Legislation Grid Template. Be sure to address the following:
Determine the legislative intent of the bill you have reviewed.
Identify the proponents/opponents of the bill.
Proponents and Opponents
Proponents: The main proponents of this bill are drug manufacturers and their industry lobbying groups. They argue that the 340B program has grown beyond its original intent and that the lack of transparency allows some hospitals to profit unfairly from drug discounts meant for the poor. They believe the bill would restore the program's original purpose and ensure that discounts are truly benefiting the patients who need them most. Supporters also include some policymakers and health insurers who are concerned about the financial impact of the program on the broader healthcare system.
Opponents: The primary opponents of the bill are the covered entities, which include many hospitals and health systems, as well as advocacy groups that represent them. They argue that the bill's reporting requirements are overly burdensome and would place a significant administrative and financial strain on them. Furthermore, they contend that the bill is a thinly veiled attempt by pharmaceutical companies to reduce their financial obligations under the 340B program. Opponents claim that the savings generated from the program are essential for funding a wide range of vital services, from mental health care to preventative health screenings, that would otherwise be underfunded. They argue that the bill would ultimately harm the very patients it claims to protect by reducing the financial resources available to the hospitals and clinics that serve them.
Legislative Intent
The primary legislative intent of the 340B Transparency Act is to increase transparency and oversight of the 340B Drug Pricing Program. The 340B program requires drug manufacturers to provide discounted outpatient drugs to certain "covered entities," which are hospitals and clinics that serve a high number of low-income or uninsured patients. The program's goal is to allow these covered entities to stretch their limited resources, enabling them to provide more comprehensive services to their communities.
However, H.R. 3290 is based on the premise that a lack of oversight has led to misuse of the program. Specifically, the bill's intent is to address concerns that some covered entities are not passing the savings from the discounted drugs on to their low-income patients, instead using the profits for other purposes. The bill seeks to achieve this by requiring these entities to submit detailed annual reports to the Department of Health and Human Services (HHS). These reports would include information on the number of patients served, the percentage of patients receiving discounted drugs, and the amount of savings generated from the program. The bill mandates that this data be published on a public, searchable website to ensure greater accountability.