Senator Bill Cassidy has introduced a bill to tighten the 340B drug discount program, adding to financial pressures on hospitals. The legislation would impose new limits on how hospitals use discounts obtained from drug manufacturers.
The 340B program allows hospitals serving low-income populations to purchase outpatient drugs at steep discounts. Critics argue some hospitals have exploited the program for profit, while supporters say it's vital for safety-net providers.
Specific provisions of the Cassidy bill were not detailed in the source. The proposal comes amid broader scrutiny of drug pricing and hospital finances. Hospitals are already contending with reduced reimbursements and rising operational costs.
The bill could ignite a political battle between hospital associations and pharmaceutical companies. Patient groups and other stakeholders may also weigh in as the legislation moves through Congress.
No immediate reaction from hospital groups or the White House was included in the report.