News Release
December 9, 2010
For Immediate Release |
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Safety Net Hospitals for Pharmaceutical Access (SNHPA) Applauds Restoration
Of 340B Orphan Drug Discounts for Children's Hospitals
(Washington, D.C.) Safety Net Hospitals for Pharmaceutical Access (SNHPA), which represents more than 600 hospitals enrolled in the Public Health Service 340B Drug Discount Program, is pleased that Congress has clarified the provision in health care reform that inadvertently denied children's hospitals access to significant discounts on so-called "orphan drugs" for their patients, many of whom require expensive, long-term or complicated care. President Obama has indicated that he will sign the bill, H.R. 4994, that includes this technical correction.
We thank the members of Congress from both sides of the aisle who advocated for this crucial clarification.
We are also pleased that Pharmaceutical Research and Manufacturers of America (PhRMA), in a statement yesterday, said it did not oppose restoring children's hospitals' access to reduced prices on these drugs.
In addition to ending the ban for children's hospitals, the law that Congress passed today makes clear that such hospitals are entitled to retroactive relief if they were denied discounts.
"While we welcome this development, SNHPA urges Congress to extend these discounts to rural and free-standing cancer hospitals that gained eligibility for 340B under health care reform," said SNHPA Executive Director Ted Slafsky. "These institutions also spend a significant portion of their drug budget on these therapies. It is imperative that they be able to access affordable medications for their patients."
Several manufacturers recently began denying 340B pricing on orphan drugs to these institutions and children's hospitals as well. SNHPA has asked these companies to resume the discounts pending guidance from federal health officials, which we have been told is forthcoming.
We will continue to work with rural and cancer hospitals and our congressional allies to lift the orphan drug ban for these institutions.
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