The House Health Policy Committee took up recently introduced legislation addressing 340B contract pharmacy arrangements during the week of Sept. 22.

House Bill (HB) 4878, sponsored by Rep. Curtis VanderWall (R-Ludington), was recently introduced and referred to the House Committee on Health Policy for further consideration. HB 4878 contains necessary language that protects hospitals’ contract pharmacy arrangements under the federal 340B drug pricing program and includes drug price transparency requirements at the state-level. In addition to this, the bill contains hospital community benefit reporting requirements. The legislation ensures that eligible, participating 340B hospitals can continue to stretch scarce resources to support healthcare providers serving vulnerable patients and communities across the state – without using state or federal taxpayer dollars.

The committee met Sept. 24 to discuss the legislation and heard from various experts and stakeholders. MHA members had the opportunity to testify in support of the legislation and answer committee questions. James (Chip) Falahee, senior vice president of legal and legislative affairs, Bronson Healthcare, shared important background information on the program and why it is vital to protect it long-term at the state-level. Stephanie Field, director of pharmacy business services, Corewell Health West and South, spoke to the technical side of the 340B program and answered specific lawmaker questions on the processes involved in managing the program from a hospital entity perspective.

The MHA will continue to work with its members and state lawmakers on protecting this critical program that supports access to affordable, community-based care across the state.

Members with any questions related to the legislation may contact the advocacy team at the MHA.