U.S. Senator Peter Welch’s (D-VT) legislation would prohibit illegal contract pharmacy restrictions and deter drug companies from future attempts to restrict pharmacy use

AIDS Healthcare Foundation (AHF) applauds United States Senator Peter Welch (D-VT) for introducing legislation that takes on drug companies for their illegal contract pharmacy restrictions. The 340B PATIENTS Act codifies contract pharmacy use for 340B covered entities, prohibiting gamesmanship by drug makers that place profits over the health outcomes of vulnerable Americans.

As a 340B provider, AHF understands how contract pharmacy restrictions not only deny nonprofits vital savings but interfere with their successful models of care. Drug companies have done everything possible to reduce the number of prescriptions available at 340B prices. For-profit interests have exploited ambiguity in the 340B statute to limit where medically underserved patients fill prescriptions.

The 340B Drug Pricing Program finds itself at the mercy of drug makers bent on unraveling a critical component of the healthcare safety net. The 340B PATIENTS Act provides legal certainty for contract pharmacy use by covered entities, helping 340B function as intended. The legislation also will deter drug companies from future attempts to restrict pharmacy access. For years, drug makers have lobbied Congress to layer burdensome compliance standards onto healthcare nonprofits for nonexistent problems. Provisions in the legislation ensure drug makers now will face heavy fines for noncompliance.

AHF urges the U.S. Senate to pass Senator Welch’s legislation and support 340B providers in their mission to care for Americans most in need.

AIDS Healthcare Foundation (AHF), the world’s largest HIV/AIDS healthcare organization, provides cutting-edge medicine and advocacy to more than 2.1 million individuals across 47 countries, including the U.S. and in Africa, Latin America/Caribbean, the Asia/Pacific Region, and Eastern Europe. To learn more about AHF, visit us online at AIDShealth.org, find us on Facebook, and follow us on Instagram, Twitter, and TikTok.

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