Thune Introduces Bill to Provide Prescription Cost Relief to Low-Income-Serving Hospitals

Press Release

Thune Introduces Bill to Provide Prescription Cost Relief to Low-Income-Serving Hospitals

Senator John Thune today joined Senator Jeff Bingaman (D-NM) in re-introducing the 340B Program Improvement and Integrity Act (S. 1239), a bill that would help safety net hospitals struggling to afford pharmaceuticals for their patients.

"Higher prescription drug costs in recent years have hurt all consumers," said Thune. "But the impact of high drug costs doesn't just hurt consumers at the pharmacy counter; it also burdens hospitals across the country that are struggling to provide affordable prescription drugs to the poor and uninsured. Rural hospitals in South Dakota serve as a lifeline to thousands of residents living in medically underserved areas - and the rising cost of drugs continues to squeeze their budgets.

"As Congress considers health care reform this year, I will work with colleagues on both sides of the aisle to advance common-sense, bipartisan legislation like this bill."

Dr. Charles Hart, Chief Executive Officer of Regional Health, Rapid City, emphasized the importance of this legislation:

"The expansion of the 340B pharmacy discounts to the inpatient arena can play a critical role in assuring the survival and quality of those health care organizations most in need during these difficult times," said Dr. Hart. "These health care safety net organizations are the only access to services in many rural and urban areas. Passage of this legislation will specifically allow our organizations to continue many services for our most needy populations."

The 340B Program Improvement and Integrity Act would extend discounted drug prices, currently available only for outpatient drugs, to inpatient drug purchases by qualified hospitals. It would also enable other rural hospitals to participate in the 340B program that, for a variety of reasons, cannot currently access the discounts. Rural hospitals, such as critical access hospitals and certain sole community hospitals and rural referral centers, would be greatly assisted by this legislation as they tend to serve a high percentage of low-income patients.

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