II 

117TH CONGRESS 

1ST SESSION S. 773 

To enable certain hospitals that were participating in or applied for the 

drug discount program under section 340B of the Public Health Service 

Act prior to the COVID–19 public health emergency to temporarily 

maintain eligibility for such program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 16, 2021 

Mr. THUNE (for himself, Ms. STABENOW, Mr. PORTMAN, Ms. BALDWIN, Mrs. 

CAPITO, and Mr. CARDIN) introduced the following bill; which was read 

twice and referred to the Committee on Health, Education, Labor, and 

Pensions 

A BILL 

To enable certain hospitals that were participating in or 

applied for the drug discount program under section 

340B of the Public Health Service Act prior to the 

COVID–19 public health emergency to temporarily maintain eligibility for such program, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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•S 773 IS

1 SECTION 1. ELIGIBILITY EXCEPTION FOR THE DRUG DIS2 COUNT PROGRAM DUE TO THE COVID–19 

3 PUBLIC HEALTH EMERGENCY. 

4 (a) IN GENERAL.—Notwithstanding any other provi5 sion of law, a hospital described in subsection (b) that, 

6 for an applicable calendar quarter, otherwise meets the re7 quirements for being a covered entity under subparagraph 

8 (L), (M), or (O) of subsection (a)(4) of section 340B of 

9 the Public Health Service Act (42 U.S.C. 256b) and is 

10 in compliance with all other requirements of the program 

11 under such section, but that, for such calendar quarter, 

12 does not meet the applicable requirement for the dis13 proportionate share adjustment percentage described in 

14 subsection (c), shall be deemed a covered entity under 

15 such respective subparagraph for such applicable calendar 

16 quarter. 

17 (b) HOSPITALS.—A hospital described in this sub18 section is— 

19 (1) an entity that, on the day before the first 

20 day of the COVID–19 public health emergency, was 

21 a covered entity described in subparagraph (L), (M), 

22 or (O) of subsection (a)(4) of section 340B of the 

23 Public Health Service Act participating in the drug 

24 discount program under such section; or 

25 (2) an entity that— 


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1 (A) prior to the COVID–19 public health 

2 emergency, submitted an application for partici3 pation in such program as a covered entity de4 scribed in subparagraph (L), (M), or (O) of sec5 tion 340B(a)(4) of the Public Health Service 

6 Act; 

7 (B) prior to or during such emergency, 

8 was approved for such participation; and 

9 (C) during such emergency, began partici10 pating in such program. 

11 (c) APPLICABLE REQUIREMENT FOR DISPROPOR12 TIONATE SHARE ADJUSTMENT PERCENTAGE.—The appli13 cable requirement for the disproportionate share adjust14 ment percentage described in this subsection is— 

15 (1) in the case of a hospital described in sub16 section (a) that otherwise meets the requirements 

17 under subparagraph (L) or (M) of section 

18 340B(a)(4) of the Public Health Service Act, the re19 quirement under subparagraph (L)(ii) of such sec20 tion; and 

21 (2) in the case of a hospital described in sub22 section (a) that otherwise meets the requirements 

23 under subparagraph (O) of such section 340B(a)(4), 

24 the requirement with respect to the disproportionate 


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•S 773 IS

1 share adjustment percentage described in such sub2 paragraph (O). 

3 (d) DEFINITIONS.—In this section: 

4 (1) APPLICABLE CALENDAR QUARTER.—The 

5 term ‘‘applicable calendar quarter’’ means a cal6 endar quarter for which eligibility for the drug dis7 count program under section 340B of the Public 

8 Health Service Act (42 U.S.C. 256b) is based on a 

9 cost reporting period for which the COVID–19 pub10 lic health emergency is in effect for all or part of 

11 such cost reporting period. 

12 (2) COVERED ENTITY.—The term ‘‘covered en13 tity’’ has the meaning given such term in section 

14 340B(a)(4) of the Public Health Service Act (42 

15 U.S.C. 256b(a)(4)). 

16 (3) COVID–19 PUBLIC HEALTH EMERGENCY.— 

17 The term ‘‘COVID–19 public health emergency’’ 

18 means the public health emergency declared by the 

19 Secretary of Health and Human Services under sec20 tion 319 of the Public Health Service Act (42 

21 U.S.C. 247d) on January 31, 2020, with respect to 

22 COVID–19. 

Æ 


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