Rep. Peters: Support for H.R. 4710

January 12, 2018

The Honorable Scott Peters
U.S. House of Representatives
1122 Longworth Building
Washington, D.C.  20515

Dear Representative Peters,

On behalf of the more than 1 million members and supporters of the Council for Citizens Against Government Waste (CCAGW), I am writing to thank you and Rep. Larry Bucshon (R-Ind.) for introducing H.R. 4710, the 340B Protecting Access for the Underserved and Safety-Net Entities Act, or the 340B PAUSE Act, and endorse this valuable legislation.

 CCAGW has been concerned about the 340B drug discount program for some time and believes it needs to be reformed so that it is returned to its original purpose of helping uninsured, indigent people get access to discounted outpatient pharmaceuticals.  Like many government programs, the 340B program has grown exponentially, become wasteful, and often fails to serve the patients it was intended to help.

CCAGW supports your legislation because it places a two-year moratorium on new enrollment of Disproportionate Share Hospitals into the program, giving time for Congress, and the Health Resources and Services Administration, which oversees the program, to evaluate and make necessary reforms.  The bill also increases oversight and transparency in the program by requiring annual data by certain current covered entities and hospitals such as the number of patients they serve under the program, whether the patients are covered by health insurance, the pharmaceutical savings acquired, and information on contracted services.

Your legislation is especially timely given the January 10, 2018, release of the House Energy and Commerce report, “Review of the 340B Drug Pricing Program,” which lays out several weaknesses in program oversight and administration and makes recommendations on how to improve the program.

Again, thank you for introducing H.R. 4710.  CCAGW is pleased to support your efforts on restoring integrity to the 340B program.

Sincerely,

Tom Schatz
President, CCAGW

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