California Hospital Association backs bill cutting prescription costs for low-income providers

The California Hospital Association announced its support for a new bill sponsored by U.S. Rep. Doris Matsui, D-Calif., that would “protect and enhance” the 340B drug- pricing program.

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The 340B program provides relief from high prescription drug prices for providers serving low-income communities though discounts to eligible facilities directly from drug manufacturers. The Stretching Entity Resources for Vulnerable Communities Act would reverse a recent cut to Medicare payments to 340B hospitals and require drugmakers to publicly disclose drug-pricing information.

“The savings gleaned from the 340B program allow hospitals to make critical, cost-effective investments to improve the health and well-being of their communities,” said Carmela Coyle, president and CEO of the hospital association. “This legislation will improve the integrity and transparency of the program, while enabling hospitals to continue to be exemplary stewards of these vital resources.”  

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