The Act prohibits drug makers from taking actions that make it hard for a drug store to get certain drugs on behalf of health care providers, deliver the drugs to the providers or dispense the drugs. The Act makes these actions an unlawful practice.
Makes it an unlawful practice for drug manufacturers to interfere directly or indirectly with a pharmacy or drug outlet acquiring 340B drugs, delivering 340B drugs to certain health care providers or dispensing 340B drugs. Makes it an unlawful practice for drug manufacturers to require utilization review data from a drug outlet or pharmacy as a condition of the acquisition, delivery or dispensation of a 340B drug. Takes effect on the 91st day following adjournment sine die.
Example: Overcharging taxpayers via Medicaid for drugs that were 15 cents but sell for up to $800.
THE OPPOSITION POINTS OUT THE BILL LACKS IN MEETING IT’S INTENT: Despite the program’s intent to serve medically underserved areas, only 35% of 340B hospitals and 23% of 340B contract pharmacies are actually located in these communities. Meanwhile, profit margins for 340B contract pharmacies are 3.3 times higher than those of independent pharmacies dispensing non-340B drugs, and medicine price markups at 340B hospitals are 6.6 times higher than at independent clinics.1 The lack of oversight and transparency has allowed these abuses to persist, straying far from the program’s original mission of improving access to affordable medications for those who need them most.
It is crucial that the 340B program is reformed to fulfill its original purpose: improving access to affordable medications for underserved communities. Any legislative action surrounding the 340B program should prioritize transparency, accountability, and equity. This includes ensuring that the savings from the program directly benefit patients, encouraging the expansion of services in rural and underserved areas, and requiring 340B entities to demonstrate how their revenues are reinvested into the communities they serve. Expanding the program without addressing its current shortcomings risks further harm to patients and local providers and perpetuates inefficiencies in the healthcare system.
EMAIL COMMITTEE
Rep.RobNosse@OregonLegislature.gov
Rep.CyrusJavadi@OregonLegislature.gov
Rep.TravisNelson@OregonLegislature.gov
Rep.EdDiehl@OregonLegislature.gov
Rep.DarinHarbick@OregonLegislature.gov
Rep.ShannonIsadore@OregonLegislature.gov
Rep.EmilyMcIntire@OregonLegislature.gov
Rep.LeslyMunoz@OregonLegislature.gov
Rep.HaiPham@OregonLegislature.gov