Overview
Title
To amend title III of the Public Health Service Act to include rural emergency hospitals in the definition of a covered entity for purposes of the 340B drug discount program.
ELI5 AI
H.R. 8144 is a proposal to let small hospitals in the countryside buy medicines at cheaper prices so they can help people who don't have much money.
Summary AI
The bill H.R. 8144 proposes changes to the Public Health Service Act to include rural emergency hospitals in the 340B drug discount program. This program allows certain hospitals to buy prescription drugs at reduced prices. By being included as a "covered entity," these rural hospitals, which serve low-income patients but may not be eligible for Medicare or state health plan benefits, would have access to discounted medications. The bill was introduced by Mr. Bergman and Mrs. Dingell in the House of Representatives.
Published
Keywords AI
Sources
Bill Statistics
Size
Language
Complexity
AnalysisAI
Editorial Commentary on H.R. 8144 - Rural 340B Access Act of 2024
General Summary
The proposed legislation, titled the "Rural 340B Access Act of 2024," aims to expand the definition of entities eligible for the 340B drug discount program. Specifically, it seeks to include rural emergency hospitals as covered entities. The 340B program allows certain hospitals and healthcare providers to purchase outpatient drugs at reduced prices, helping them stretch scarce resources and provide comprehensive services to vulnerable populations. By amending the Public Health Service Act, this bill proposes that rural emergency hospitals be included under this umbrella, provided they meet certain governance or contractual criteria.
Summary of Significant Issues
A primary issue raised by this bill is the ambiguity surrounding the term "formally granted governmental powers." It is not clearly defined what powers or authority a corporation must have to qualify as a covered entity, which could impact the eligibility of these hospitals. Additionally, the definition of a "rural emergency hospital" relies on an external section of the Social Security Act, potentially complicating the understanding and application of the bill.
The bill also faces challenges in determining eligibility based on contractual agreements for private non-profit rural emergency hospitals that serve low-income individuals. The sufficiency of such contracts in qualifying hospitals for the 340B program is not outlined, which could lead to legal disputes or varying interpretations. Lastly, the bill does not provide explicit criteria for assessing whether rural emergency hospitals maintain their 340B program eligibility, possibly leading to inconsistencies in application.
Impact on the Public
For the general public, especially those residing in rural areas, the proposed changes could improve access to affordable medications and healthcare services. If rural emergency hospitals become eligible for the 340B program, they would likely be better equipped to provide essential services to low-income patients. This could lead to overall improvements in public health outcomes and a reduction in healthcare costs for underserved populations.
Impact on Specific Stakeholders
Rural Emergency Hospitals: The bill would significantly benefit rural emergency hospitals by making them eligible for drug discounts, potentially lowering operational costs and allowing these hospitals to expand their services. However, the ambiguity in the bill may complicate the eligibility process, creating administrative and legal challenges.
State and Local Governments: As the bill involves partnerships or contractual agreements between rural emergency hospitals and government entities, there may be increased administrative responsibilities for state and local governments to define or establish these relationships clearly.
Non-Profit Healthcare Organizations: Private non-profit hospitals might see this bill as an opportunity to enhance service delivery to low-income individuals. However, uncertainty regarding eligibility criteria and contractual requirements could deter some organizations unless clarity is provided.
Pharmaceutical Manufacturers: While pharmaceutical companies are not directly targeted by the bill, expanding the 340B program's scope to include more entities could lead to an increased demand for discounted drugs, impacting manufacturers' pricing strategies and revenue from drug sales.
Overall, while the bill promises potential benefits for rural healthcare, the lack of clarity and possible administrative burdens may hinder its implementation. Lawmakers and stakeholders might need to address these issues to ensure that the legislative changes have the intended positive impact on healthcare delivery in rural areas.
Issues
Ambiguity in the term 'formally granted governmental powers' in Section 2, which might lead to uncertainty about what specific powers or authority are required for a public or private non-profit corporation to qualify as a covered entity, potentially affecting eligibility.
The definition of 'rural emergency hospital' in Section 2 relies on an external reference (section 1861(kkk)(2) of the Social Security Act), which could create confusion or necessitate additional resources to understand eligibility for the 340B program.
Potential complexity in determining eligibility of private non-profit rural emergency hospitals in Section 2 based on the nature of their contract with State or local governments to provide health care services to low income individuals.
Lack of clarity in Section 2 regarding what constitutes a sufficient contract between private non-profit rural emergency hospitals and State or local governments, which could lead to legal or administrative challenges in determining eligibility.
No explicit criteria outlined in Section 2 for assessing qualifications or requirements for rural emergency hospitals to maintain coverage under the 340B program, potentially leading to inconsistencies or disputes.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the Act states that the short title of the legislation is the "Rural 340B Access Act of 2024".
2. Including rural emergency hospitals as covered entities for purposes of the 340B drug discount program Read Opens in new tab
Summary AI
The section amends the Public Health Service Act to include rural emergency hospitals as eligible participants in the 340B drug discount program if they are either operated by a government or are non-profit hospitals with formal government powers or contracts to provide healthcare to low-income individuals not covered by Medicare or Medicaid.