Rural 340B Access Act of 2025This bill makes rural emergency hospitals (REHs) eligible to purchase drugs from manufacturers at discounted prices by participating in the Health Resources and Services Administration’s (HRSA’s) 340B drug pricing program. HRSA’s 340B program requires drug manufacturers that participate in the Medicaid program to sell certain outpatient drugs at discounted prices to entities listed as eligible under current law. Additionally, in 2020, Congress established REHs as a new Medicare provider designation for hospitals in rural areas providing emergency department services, observation care, and other outpatient medical and health services for which the annual per patient average length of stay does not exceed 24 hours. The bill adds qualifying REHs to the list of entities that are eligible to participate in the 340B program.
The inclusion of rural emergency hospitals in the 340B program potentially allows these facilities to benefit from reduced drug prices, thereby facilitating better healthcare service delivery. Rural emergency hospitals often are the first point of care for individuals in remote areas, making their inclusion in the drug discount program crucial. This bill could not only alleviate financial burdens from these institutions but also enable them to allocate more resources towards patient care, staff hiring, and increased operational capabilities, which are critical in rural settings where healthcare resources are often scarce.
House Bill 44, known as the Rural 340B Access Act of 2025, aims to amend the Public Health Service Act specifically to include rural emergency hospitals within the definition of a covered entity eligible for the 340B drug discount program. This important legislative change recognizes the unique role that rural emergency hospitals play in providing essential healthcare services to underserved populations, particularly those who may not be able to afford necessary medications. By expanding the definition of covered entities to include these hospitals, HB44 seeks to enhance access to affordable drugs and improve healthcare outcomes in rural areas.
While there may be widespread support for increasing access to medications in rural areas, some potential points of contention could arise regarding the implementation of the bill. Questions may be raised about the criteria for qualification as a rural emergency hospital and whether the full range of rural facilities will be able to take advantage of the new provisions effectively. Additionally, concerns about the sustainability of funding for the 340B program amidst costs associated with drug pricing reforms might emerge, as well as how the implementation of this act might affect existing entities already involved in similar programs.