Cramer Calls For 340B Drug Pricing Program Reforms
WASHINGTON, D.C. – Congressman Kevin Cramer made the following comments after the release of an oversight report by the House Energy and Commerce Committee into the 340B prescription drug program. The 340B Program, which was created in 1992, enables covered entities to use federal resources to reach more eligible patients and provide more comprehensive services. Covered entities can provide 340B drugs to patients regardless of income or insurance status and generate revenue by receiving reimbursement from patients insurance.
“I am grateful for the hard work of the committee and its staff to identify areas of improvement and reform in the 340B program. As a long-time supporter of this program, I look forward to working with the administration and fellow members of congress to improve oversight and implement reforms to preserve the program for our rural hospitals and the thousands of North Dakotans who desperately need it.”
The executive summary of the report highlights the strong bipartisan support of the program, but also explains some tremendous weaknesses of the program. Specifically, the report states, “Congress did not clearly identify the intent of the program and did not identify clear parameters, leaving the statute silent on many important program requirements. …HRSA [Health Resources and Services Administration] lacks sufficient regulatory authority to adequately oversee the program and clarify program requirements.”
The summary also states, “The committee has been examining the operation and oversight of the 340B program over the past two years. Through stakeholder meetings, hearings, and document requests, the committee has identified several weaknesses in program administration and oversight.”
Among the report’s findings are:
To help address these and other concerning findings, the report makes 12 recommendations, including:
Click HERE to read a copy of the report.