The Senate Health, Education, Labor and Pensions (HELP) Committee held a hearing last week to examine the 340B drug pricing program. HELP Committee Chairman Lamar Alexander (R-TN) said the purpose of the hearing was to learn more about the program and how it “might be improved so that hospitals and clinics can continue to provide low-income patients with help to afford their health care.” Congress created the 340B program 25 years ago to give eligible health care providers financial relief from high prescription drug costs; however, some stakeholders (primarily the pharmaceutical industry) have urged lawmakers to scale back the program. Sen. Bill Cassidy (R-LA) expressed concerns about the 340B program at the hearing and has introduced legislation that would make significant changes to the program. Sen. Todd Young’s (R-IN) comments were generally supportive of the program, but he would like to see more formal hospital reporting and transparency. Chairman Alexander echoed Sen. Young’s sentiment that while he was sympathetic to the program, the Chairman wants more information about how the hospitals use the savings.  

In a statement submitted for the hearing, the American Hospital Association (AHA) highlighted how hospitals are using savings from the 340B program to provide access to critical services to their communities. According to a recent analysis released by the AHA, tax-exempt hospitals in the 340B program provided $51.7 billion in total benefits to their communities in 2015. In Indiana, hospitals from St. Catherine Regional in urban Lake County to Perry County Memorial Hospital in rural southern Indiana rely on the 340B program to provide free services to low-income patients and deliver high-quality services to those who need it most. Learn how the 340B program is helping Indiana hospitals keep patients and communities healthy here.​