On August 5, a bipartisan group of senators released a bill intended to reform the 340B drug program. This legislation follows several months of growing interest in reshaping the drug discount program, with the Trump administration seeking to test a pilot where discounts are shifted from point-of-sale to manufacturer rebates after purchase. The current proposed legislation is titled “Supporting Underserved and Strengthening Transparency, Accountability, and Integrity Now and for the Future of 340B” or SUSTAIN 340B.
The bill would establish a comprehensive framework for the 340B program, including codified protections for covered entities alongside additional oversight, accountability, and transparency requirements.
The proposed legislation does the following:
- Reaffirms the program’s safety-net purpose with point-of-sale discounts
- Requires manufacturers to provide 340B pricing regardless of contract pharmacy use
- Prohibits certain restrictions and discrimination against covered entities
Further, the bill bolsters program integrity through new standards for contract pharmacy arrangements, defines patient and covered service eligibility, expands federal and manufacturer audit authority, and strengthens enforcement mechanisms for noncompliance. Notably, the proposal would sunset the 340B Rebate Model Pilot Program within a year of enactment and transition to an independent, third-party clearinghouse model to address potential duplicate discounts.
If you didn’t have time to read the bill in its entirety, Sellers Dorsey summarized the proposed legislation with a section-by-section breakdown.
Stay ahead of the ever-evolving healthcare policy landscape. Get the latest updates coming from CMS, the current administration, Congress, and more, sent straight to your inbox the same time each week.
