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Gov. Pillen Holds Bill Signing on the 340B Contract Pharmacy Protection Act
LINCOLN, NE – Today, Governor Jim Pillen hosted a news conference and bill signing for LB168, the 340B Contract Pharmacy Protection Act. Calling the bill a critical part of healthcare, especially for hospitals in rural communities, Gov. Pillen expressed his appreciation for the work of senators, hospitals and others to get the legislation to his desk.
LB168, introduced by Senator Brian Hardin, protects the savings created by the 340B program. Passed Congress in 1992, the program was later expanded to cover additional entities. Under 340B, drug manufacturers that participate in Medicaid, sell certain outpatient drugs at discounted prices to health care providers like hospitals, clinics and federally qualified health centers – places that often care for uninsured and underinsured patients. During COVID, drug manufacturers not only disallowed discounts for medications, but they also imposed burdensome requirements, which are now prohibited through passage of the 340B Contract Pharmacy Protection Act.
“This is really important legislation that allows our hospitals – from the biggest to the smallest – to provide the services Nebraskans depend on,” said Gov. Pillen. “The savings from the 340B program have been a critical part of how our hospitals operate and ensures that our patients are getting great care.”
Sen. Hardin emphasized that without legislation securing the savings from drug costs, hospitals – both rural and urban – as well as their patients, would suffer, including his own hospital in Scottsbluff.
“In fact, the hospitals that are most vulnerable -- probably a dozen and a half of the 58 critical access hospitals that participate in 340B -- may not see it through another year if they don’t get that help because they operate at a 1.4% margin,” noted Sen. Hardin. “’I’m very thankful for everyone who has stepped forward to make sure this moves ahead. Thanks to all my fellow senators who saw this need.”
Olivia Little, who directs the 340B program for Johnson County Hospital, explained in detail how the program has been a benefit to her hospital system and its associated clinics.
“Our hospitals rely heavily on the 340B program to fund services that operate at a loss, like our home health program and our EMS program. While these services operate at a loss, they are vital to patients and community members caring for their loved ones.”
Tyler Toline, president and CEO of Franciscan Healthcare in West Point noted that his healthcare system had similar challenges.
“We have a home health and hospice that loses many hundreds of thousands of dollars a year. We have a nursing home and an assisted living facility that are in that same boat. When you look at the dollars that we get out of the 340B program, it allows us to keep these operations and services going, which are vital to the success of our communities.”
“Without those rural, critical care hospitals, we are going to lose population,” added Senator Mike Jacobsen, chairman of the Banking, Commerce and Insurance Committee, which heard and advanced the bill for debate.
“This is another step forward in trying to preserve the hospitals that are there, so they can remain open and continue to serve Medicare and Medicaid patients, which is where a lot of these dollars go.”
“Staff members at our hospitals do amazing work, and I’m proud to sign this bill into law to help their efforts,” said Gov. Pillen. “This legislation will make a great deal of difference for our critical access and rural hospitals going forward.”
Gov. Pillen Speaking Before Senators, Hospital Administrators, and Guests
Governor Pillen Flanked by Senator Mike Jacobson (Left) and Senator Brian Hardin (Right) Showing the Signed Bill
Senator Brian Hardin Speaking on His Bill, the 340B Contract Pharmacy Protection Act
