One of the more controversial aspects of the 21st Century Cures bill -- a bill aimed at fast-tracking drug development that just passed the House Energy and Commerce Committee last week -- was a section that didn't end up in the bill.
The section, which was removed before committee passage, dealt with the so-called340B program, a drug-discount program used by safety-net hospitals and healthcare clinics that serve the poor. Under the 340B program, pharmaceutical manufacturers are required to provide outpatient drugs to the hospitals and clinics at significantly reduced prices.
The 340B program, which was created in 1992, was used to purchase an estimated $7.5 billion worth of drugs in 2013, according to Apexus, an Irving, Texas-based private contractor that helps the federal government manage the program. That represents a 2.3% share of the U.S. prescription drug market, according to a Health Affairs policy brief published in November 2014.
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