Hospitals, clinics and insurers disagree on 340B fixes as Vermont considers H.266

Lawmakers heard competing testimony on H.266, a bill aimed at preserving access to federal 340B drug discounts for covered entities, including hospitals and federally qualified health centers (FQHCs). Hospital and clinic leaders said manufacturer restrictions on 340B contract pharmacies have sharply reduced revenue and forced difficult program and rate decisions; insurer representatives urged the committee to remove provisions that would impose new reporting or liability requirements on health plans.

Jordan Esty, director of government affairs for MVP Health Care, told the committee that insurers are not party to the 340B program and generally cannot determine from claims whether a drug was acquired under 340B. “This is a manufacturer and a provider program,” Esty said, adding that insurers do not have access to purchase-discount information and that proposed lawsuit or “interference” provisions aimed at insurers could create unintended…