Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the 340b Transparency topic
No spam. Unsubscribe anytime.
Senate approves bill amending Public Health Code amid floor objections over 340B transparency
Summary
The Michigan Senate passed Senate Bill 94, an amendment to the Public Health Code, on a 33-3-1 vote after floor remarks criticizing the bill for not requiring detailed disclosure or reinvestment of 340B savings.
The Michigan Senate passed Senate Bill 94, an amendment to the Public Health Code, on a 33-3-1 vote during the floor session. The question on final passage drew extended remarks from Senator Santana opposing the measure on the grounds that it does not impose sufficient transparency or accountability on entities participating in the federal 340B drug-pricing program.
Senator Santana argued the 340B program, which provides discounted medications to hospitals and clinics that serve low-income patients, has drifted from its original mission because there are “no guardrails” ensuring savings are reinvested in patient care. “This bill requires cover entities to provide some disclosure. However, it can be described as anemic at best,” Santana said on the floor. He said the bill does not require hospitals to disclose how much revenue they generate from the program, how much is paid to third-party administrators, or how much is reinvested in patient care.
Santana cited state and out-of-state evidence to highlight concerns about the program’s current structure. He referenced a recent Minnesota report that he said found 340B providers generated at least $630,000,000 in net revenue in a single year and said the largest hospital systems received the vast majority of that revenue. He also noted that, he said, only 38% of 340B disproportionate-share hospitals are located in medically underserved areas and that some safety-net clinics reported negative net revenue after paying third parties.
Supporters and sponsors of the bill did not offer extended floor debate on the record during the session; the chair proceeded to the vote after the opportunity for discussion. The secretary announced the final tally: 33 ayes, 3 noes and 1 excused. The journal will contain the printed remarks requested by Senator Santana.
Senator Santana asked colleagues and the House to strengthen the legislation to require clearer reporting and mechanisms to ensure 340B savings benefit underserved patients. His written request to have his remarks printed in the journal was approved on the floor.
