WASHINGTON – Key lawmakers on the U.S. House Energy and Commerce Committee today jointly introduced legislation that would expand a popular prescription drug discount program for health care providers.  Congressman Bart Stupak (D-Menominee) said the legislation, which he co-sponsored with Congressman Bobby Rush (D-IL), would expand Medicaid’s 340B drug discount program to include rural health providers such as Sole Community Hospitals, Rural Referral Centers and Critical Access Hospitals. 

“On average, health care providers that qualify for the 340B program pay 40 to 50 percent less for prescription drugs than average wholesale price,” Stupak said. 

Currently, under Medicaid’s 340B program, discounts are made available on outpatient drugs to certain qualifying “safety net” health care providers that serve the nation’s most vulnerable patient populations.  Under the legislation introduced, covered entities would be potentially eligible for the 340B program for both inpatient and outpatient care. 

“This legislation would mean that rural health care providers like Marquette General Hospital, Alpena Regional Medical Center and Dickinson County Health Care System save money,” Stupak said.  

It has been estimated that Marquette General Hospital could save as much as $1 million annually under the 340B program and Dickinson County Health Care System would realize a savings of $300,000 to $400,000 annually.  Northern Michigan health care providers praised Stupak’s efforts for introducing the bill and ensuring it included provisions benefiting rural health care.

“Allowing Rural Referral Centers and Sole Community Hospitals to be eligible for the 340B program will enable these health care providers to continue offering quality health care to rural patients,” said John McVeety, CEO of Alpena Regional Medical Center.  "Bart Stupak has been a stalwart advocate on many rural health care issues and we thank him for taking the lead on this fight as well.”

“The savings realized by this legislation will help provide our Healthcare System the additional money needed to allow us to maintain and improve our continual efforts to provide our community the most comprehensive quality healthcare,” said Dickinson County Healthcare System CEO John Schon.  “We thank Congressman Stupak for introducing this legislation and for all of his legislation on rural health care issues.”

Stupak serves on the House Energy and Commerce Committee, which has jurisdiction over many health issues.  Earlier this year, Stupak received the National Rural Health Association’s “Rural Health Champion” award for his leadership on rural health care legislative issues.

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