Bill Details
View committees (1)
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would let rural emergency hospitals take part in the federal 340B drug discount program. That program helps certain health care providers buy outpatient drugs at lower prices so they can stretch their budgets and serve more patients, especially people with low incomes. The bill says these rural emergency hospitals would count as eligible providers if they are run by a state or local government, are nonprofit groups with government powers, or are private nonprofit hospitals that have a contract to care for low-income people.
- It would change federal health law so rural emergency hospitals are included as eligible “covered entities” for the 340B drug discount program.
- The goal is to help these hospitals save money on medicines and use those savings to support care in rural areas.
- To qualify, the hospital must fit one of the listed types of ownership or public service arrangements, such as being government-run or a nonprofit with a government contract.
- The bill is meant to improve access to health care and medicines for people living in rural communities, especially those with low incomes.
Official Summaries
Rural 340B Access Act of 2025
This bill makes rural emergency hospitals (REHs) eligible to purchase drugs from manufacturers at discounted prices by participating in the Health Resources and Services Administration’s (HRSA’s) 340B drug pricing program. HRSA’s 340B program requires drug manufacturers that participate in the Medicaid program to sell certain outpatient drugs at discounted prices to entities listed as eligible under current law. Additionally, in 2020, Congress established REHs as a new Medicare provider designation for hospitals in rural areas providing emergency department services, observation care, and other outpatient medical and health services for which the annual per patient average length of stay does not exceed 24 hours. The bill adds qualifying REHs to the list of entities that are eligible to participate in the 340B program.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 44 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 44
To amend title III of the Public Health Service Act to include rural
emergency hospitals in the definition of a covered entity for purposes
of the 340B drug discount program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 3, 2025
Mr. Bergman (for himself and Mrs. Dingell) introduced the following
bill; which was referred to the Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To amend title III of the Public Health Service Act to include rural
emergency hospitals in the definition of a covered entity for purposes
of the 340B drug discount program.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rural 340B Access Act of 2025''.
SEC. 2. INCLUDING RURAL EMERGENCY HOSPITALS AS COVERED ENTITIES FOR
PURPOSES OF THE 340B DRUG DISCOUNT PROGRAM.
Section 340B(a)(4) of the Public Health Service Act (42 U.S.C.
256b(a)(4)) is amended by adding at the end the following new
subparagraph:
``(P) An entity that is a rural emergency hospital
(as defined in section 1861(kkk)(2) of the Social
Security Act) that is owned or operated by a unit of
State or local government, is a public or private non-
profit corporation which is formally granted
governmental powers by a unit of State or local
government, or is a private non-profit rural emergency
hospital which has a contract with a State or local
government to provide health care services to low
income individuals who are not entitled to benefits
under title XVIII of the Social Security Act or
eligible for assistance under the State plan under this
title.''.
<all>