The 340B PATIENTS Act of 2024 clarifies and strengthens the Section 340B drug discount program, which allows hospitals, clinics, and health centers to purchase medications at reduced prices from manufacturers in exchange for the manufacturers' participation in Medicare and Medicaid. The bill specifically protects covered entities' ability to use contract pharmacies to dispense these discounted drugs to their patients, ensuring that manufacturers cannot restrict where or how these drugs are dispensed or impose conditions that discourage the use of the program. The legislation establishes new enforcement penalties of up to $2 million per day for manufacturers that violate these requirements, with regulations to be finalized within 180 days of enactment. The bill affects drug manufacturers, covered health care entities, and patients who depend on these organizations for care and medication access. By strengthening the 340B program, the bill aims to help hospitals and clinics stretch their resources further to serve more patients and provide comprehensive services, particularly for specialty drugs used to treat serious conditions like cancer and rheumatoid arthritis.
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