II 

116TH CONGRESS 

2D SESSION S. 4160 

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 

JULY 2, 2020 

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 4160 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 section 340B(a)(4) of the Public 

9 Health Service Act (42 U.S.C. 256b(a)(4)) but that, for 

10 such calendar quarter, does not meet the applicable re11 quirement for the disproportionate share adjustment per12 centage described in subsection (c), shall be deemed a cov13 ered entity under such respective subparagraph for such 

14 applicable calendar quarter. 

15 (b) HOSPITALS.—A hospital described in this sub16 section is— 

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

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

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

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

21 Public Health Service Act participating in the drug 

22 discount program under such section; or 

23 (2) an entity that— 

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

25 emergency, submitted an application for partici26 pation in such program as a covered entity deVerDate Sep 11 2014 01:23 Jul 12, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4160.IS S4160

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•S 4160 IS

1 scribed in subparagraph (L), (M), or (O) of sec2 tion 340B(a)(4) of the Public Health Service 

3 Act; 

4 (B) prior to or during such emergency, 

5 was approved for such participation; and 

6 (C) during such emergency, began partici7 pating in such program. 

8 (c) APPLICABLE REQUIREMENT FOR DISPROPOR9 TIONATE SHARE ADJUSTMENT PERCENTAGE.—The appli10 cable requirement for the disproportionate share adjust11 ment percentage described in this subsection is— 

12 (1) in the case of a hospital described in sub13 section (a) that otherwise meets the requirements 

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

15 340B(a)(4) of the Public Health Service Act, the re16 quirement under subparagraph (L)(ii) of such sec17 tion; and 

18 (2) in the case of a hospital described in sub19 section (a) that otherwise meets the requirements 

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

21 the requirement with respect to the disproportionate 

22 share adjustment percentage described in such sub23 paragraph (O). 

24 (d) DEFINITIONS.—In this section: 


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•S 4160 IS

1 (1) APPLICABLE CALENDAR QUARTER.—The 

2 term ‘‘applicable calendar quarter’’ means a cal3 endar quarter for which eligibility for the drug dis4 count program under section 340B of the Public 

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

6 cost reporting period for which the COVID–19 pub7 lic health emergency is in effect for all or part of 

8 such cost reporting period. 

9 (2) COVERED ENTITY.—The term ‘‘covered en10 tity’’ has the meaning given such term in section 

11 340B(a)(4) of the Public Health Service Act (42 

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

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

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

15 means the public health emergency declared by the 

16 Secretary of Health and Human Services under sec17 tion 319 of the Public Health Service Act (42 

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

19 COVID–19. 

Æ 


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