Committee hears competing views on 340B drug-pricing program; hospitals warn service cuts, pharma cites cost and transparency concerns

The Michigan House Health Policy Committee spent its meeting hearing educational testimony on the federal 340B drug-pricing program, with hospital leaders saying the program underpins rural and low-income care and a pharmaceutical industry representative warning the program has grown beyond its original intent and lacks transparent safeguards.

Elizabeth Cutter, a representative of the Michigan Health and Hospital Association, told the committee the 340B program “is a non taxpayer funded program that supports healthcare in your community.” She said program savings let participating hospitals fund local services such as cancer care, labor and delivery, nursing-home support, transportation and charity care.

Representatives of McLaren Healthcare and Memorial Healthcare gave community-level examples. Deidre Wilson, senior vice president of government relations for McLaren Healthcare, and Maureen D’Agostino, McLaren’s vice president of accreditation and regulatory programs, described 9 McLaren hospital organizations participating in 340B and said the savings are spent on services based on local needs. McLaren said it used 340B…