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S 2372119th CongressIn Committee

340B PATIENTS Act of 2025

Introduced: Jul 22, 2025
Sponsor: Sen. Welch, Peter [D-VT] (D-Vermont)
Healthcare
Standard Summary
Comprehensive overview in 1-2 paragraphs

The 340B PATIENTS Act of 2025 (S. 2372) seeks to strengthen and clarify the 340B Drug Discount Program by ensuring that drug manufacturers must provide discounted drugs to eligible covered entities (like hospitals and clinics) regardless of how or where the drug is dispensed. This expressly covers dispensing through contract pharmacies, which many covered entities use to reach patients. The bill also prohibits manufacturers from placing conditions on discounted purchases and adds stricter enforcement tools, including civil monetary penalties for certain violations and a new process that lets covered entities bring claims of violations. Regulators would be required to issue implementing rules within 180 days of enactment. Overall, the bill aims to safeguard access to 340B discounts, particularly for patients who rely on contract pharmacies and specialty medications.

Key Points

  • 1Clarifies that manufacturers must offer 340B discounts on drugs purchased by covered entities regardless of the dispensing location or method, including through contract pharmacies; and prohibits conditions on purchasing or using discounted drugs that would restrict delivery, location, or mechanisms of purchase.
  • 2Explicitly allows covered entities to contract with pharmacies to dispense 340B drugs on the entity’s behalf, with the same 340B requirements applying to those contract-pharmacy arrangements.
  • 3Establishes specific prohibitions on conditions that could limit distribution or impose data/reporting requirements, and adds a new category of enforcement related to contract pharmacies.
  • 4Creates civil monetary penalties for violations other than overcharges (up to $2,000,000 per day of violation, with factors to determine penalties and ongoing daily assessment until the violation ends); mandates that penalties be set by regulations within 180 days of enactment.
  • 5Requires the Secretary to promulgate regulations within 180 days to allow covered entities to file claims of violations under an established process, expanding oversight and recourse for entities.

Impact Areas

Primary: Covered entities participating in the 340B program (hospitals, clinics, health centers), especially those using contract pharmacies to dispense 340B drugs; patients who receive medications through these entities.Secondary: Drug manufacturers with 340B deals; contract pharmacies that dispense 340B drugs on behalf of covered entities.Additional impacts: Potentially greater regulatory/compliance costs for manufacturers; increased enforcement and potential financial penalties; clearer rights and pathways for covered entities to challenge violations; possible effects on how 340B savings are realized and reinvested into patient care and community services.340B Drug Discount Program: a federal program requiring drug manufacturers to sell outpatient drugs at discounted prices to eligible safety-net providers to stretch scarce resources and help serve more patients.Ceiling price: the maximum price a manufacturer can charge for 340B drugs, often below the usual price.Contract pharmacies: third-party pharmacies contracted by covered entities to dispense 340B drugs to patients.
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