[Congressional Record Volume 153, Number 82 (Thursday, May 17, 2007)]
[Senate]
[Pages S6260-S6261]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               340B PROGRAM IMPROVEMENT AND INTEGRITY ACT

  Mr. THUNE. Mr. President, this Chamber has spent a good deal of time

[[Page S6261]]

recently discussing an important topic that affects all consumers in 
this country--the high cost of prescription drugs. Not only do rising 
prescription drug costs contribute to all individuals' health insurance 
costs--but our health care providers feel the burden of these rising 
costs as well.
  In my home State of South Dakota, rural hospitals serve as a lifeline 
to thousands of constituents living in medically underserved areas--and 
the rising cost of drugs continues to squeeze their budgets. As we 
continue to see in all regions of the country, cost directly impacts 
access.
  In 1992, Congress created the 340B program under Medicaid to lower 
the cost of drugs purchased by a limited number of entities serving a 
high number of low-income and uninsured individuals--such as Federally 
Qualified Health Care Centers and nonprofit hospitals providing care to 
a disproportionate share of Medicaid patients. Under the 340B program, 
pharmaceutical manufacturers are required to provide these entities 
discounts on outpatient drugs as part of each manufacturer's Medicaid 
participation agreement.
  This week, I was pleased to reintroduce legislation with my colleague 
from New Mexico, Senator Bingaman, to improve the 340B program and 
extend these discounts so that they not only apply to outpatient drug 
purchases, but also inpatient prescription drug purchases for 
qualifying hospitals.
  Additionally, this bill would expand eligibility in the program to 
all critical access hospitals, as well as sole community hospitals and 
rural referral centers that serve a high percentage of low-income and 
indigent patients.
  This legislation includes important provisions to improve the 
integrity of the program and generate savings to Medicaid. 
Specifically, the bill would generate savings for the Medicaid program 
by requiring participating hospitals to credit Medicaid with a 
percentage of their savings on inpatient drugs. Additionally, the bill 
seeks to enhance the overall efficiency of the 340B program through 
improved enforcement and compliance measures with respect to 
manufacturers and covered entities.
  Hospitals serving predominately rural areas, such as the 38 critical 
access hospitals in South Dakota, play a crucial role in my State in 
providing care to patients in underserved communities. Extending the 
340B drug discount program to these hospitals will help them to afford 
their prescription drugs--and at the same time lower the overall cost 
of care at these hospitals and to the Federal Government.
  The 340B Program Improvement and Integrity Act of 2007 is commonsense 
legislation that reduces the cost of drugs for health care providers 
serving society's most vulnerable citizens. I look forward to working 
with my colleagues on both sides of the aisle to get this bipartisan 
legislation passed and signed into law.

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