Michigan House health panel hears hospital testimony on 340B cuts, pharma warns of broader system effects

At a Michigan House Health Policy Committee meeting, hospital and industry representatives gave detailed testimony about the federal 340B drug-pricing program, describing how manufacturer restrictions and program changes have reduced savings hospitals use to fund local services and warning of wider cost effects across payers.

The program allows eligible safety-net providers to purchase certain outpatient drugs at discounted prices and to reinvest savings in local care, presenters said. Elizabeth Cutter of the Michigan Health & Hospital Association told the committee that 340B "is an essential safety net program that supports access for vulnerable communities and healthcare providers that care for them." She said the benefit "stays in your community with the local hospital who participates" and that savings fund services such as cancer care, labor and delivery, nursing-home care and charity programs.

Representatives from McLaren Health Care and Memorial Healthcare described how their systems use 340B savings. Deidre Wilson, senior vice president for government relations at McLaren, and Maureen D'Agostino, McLaren vice president for accreditation and regulatory programs, said McLaren has nine hospital organizations participating and works with 36 rural clinics. D'Agostino said McLaren used program savings for patient assistance funds, free naloxone distribution and…