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WASHINGTON, DC—A group of lawmakers, health care advocates and hospitals joined today on Capitol Hill in a call for an increased federal commitment to making sure hard-working families have increased access to safe, affordable health care.
U.S. Rep. Bobby Rush (D-IL), Rep. Bart Stupak (D-MI), and Rep. Jo Ann Emerson (R-MO), were joined by Bill von Oehsen,president of Safety Net Hospitals for Pharmaceutical Access, Larry Gage, president of National Association of Public Hospitals, Roberta Rakove vice president Government Relations Mt. Sinai Hospital and other leading health care advocates to introduce Rush’s 340B Drug Expansion Act of 2007 in the House.
“We must work tirelessly to make health care more safe, affordable and accessible by helping hospitals' save on prescription drugs. This allows hospitals to expand patient services while passing on the savings to consumers,” said Rep. Rush. “I am committed to moving this bill immediately and I am pleased to have co-sponsors Stupak and Emerson working to move this legislation along.”
Hardworking families nationwide seek better access to safe, affordable health care. The 340B Drug Expansion Act of 2007 (HR 2626) will increase access to prescription drugs for low income individuals, through community health centers and other venues.
Congress established the 340B Drug Pricing program, created through the Veterans Health Care Act of 1992, to limit the cost of outpatient pharmaceutical drugs paid by safety net hospitals, clinics, and providers.
The law requires pharmaceutical manufacturers participating in the Medicaid program provide discounts on covered outpatient drugs purchased by “covered entities”. Through the 340B program discounts would be extended to inpatient drugs for DSH hospitals, specifically rural referral, sole-provider and Medicare-dependent hospitals.
“On average, health care providers that qualify for the 340B program pay 40 to 50 percent less for prescription drugs than average wholesale price,” Rep. Stupak said. “This legislation recognizes the unique challenges rural health care providers face and, by extending 340B benefits to them, ensures they save money and are able continue providing quality health care to rural Americans.”
Hospitals and health care advocates praise the expansion provisions in the new bill. “We commend Congressman Rush for his strong support of our nation’s safety net hospitals. Extending discounts to inpatient drugs will provide much-needed financial relief to Children’s Memorial Hospital,” said Patrick Magoon, President and CEO, Children’s Memorial Hospital.
“In the past fiscal year, Mount Sinai purchased $2.4 million in 340b drugs for outpatient. We estimate the savings to Sinai to be $720,000,” said Roberta Rakove, Vice President Government Relations Mt. Sinai Hospital. “Based on this past year's expenditures, if 340B were extended to inpatient, we would have purchased $8.2 million in 340 b inpatient drugs for a cost savings of $2.46 million.”
According to Sister Elizabeth Van Straten, President and CEO of St. Bernard Hospital, Congressman Rush's bill to allow "safety net" hospitals access to discounted drug prices for inpatients would cut the hospital's cost of care by at least $750,000 per year. "As an inner-city hospital on the south side of Chicago struggling to serve an enormous number of uninsured patients, this legislation would be immensely helpful in making ends meet -- it provides critical assistance to our mission to care for society's most vulnerable," she said.
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