I 

117TH CONGRESS 

1ST SESSION H. R. 3203 

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 HOUSE OF REPRESENTATIVES 

MAY 13, 2021 

Ms. MATSUI (for herself, Mr. STEWART, Mrs. AXNE, Mr. MCKINLEY, Ms. 

SPANBERGER, and Mr. JOHNSON of South Dakota) introduced the following bill; which was referred to the Committee on Energy and Commerce 

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, 

3 SECTION 1. ELIGIBILITY EXCEPTION FOR THE DRUG DIS4 COUNT PROGRAM DUE TO THE COVID–19 

5 PUBLIC HEALTH EMERGENCY. 

6 (a) IN GENERAL.— 


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1 (1) DSH ADJUSTMENT PERCENTAGE TREAT2 MENT.—Notwithstanding any other provision of law, 

3 a hospital described in subsection (b) that, for an 

4 applicable calendar quarter, otherwise meets the re5 quirements for being a covered entity under sub6 paragraph (L), (M), or (O) of subsection (a)(4) of 

7 section 340B of the Public Health Service Act (42 

8 U.S.C. 256b) but that, for such calendar quarter, 

9 does not meet the applicable requirement for the dis10 proportionate share adjustment percentage described 

11 in subsection (c), shall be deemed to meet such ap12 plicable requirement under such respective subpara13 graph for such applicable calendar quarter (includ14 ing any such quarter occurring before the date of 

15 the enactment of this Act). 

16 (2) TREATMENT OF CERTAIN ENTITIES.—Not17 withstanding any other provision of law, a hospital 

18 described in subsection (b) that, on the day before 

19 the first day of the COVID–19 public health emer20 gency (or at any point during such emergency), was 

21 a covered entity described in subparagraph (L) of 

22 subsection (a)(4) of section 340B of the Public 

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

24 an applicable calendar quarter, did not meet the re25 quirement described in subparagraph (L)(ii) of such 


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1 subsection and, during the COVID–19 public health 

2 emergency, registered as a covered entity described 

3 in subparagraph (O) of such subsection, may elect to 

4 be deemed to be a covered entity described in sub5 paragraph (L) of such subsection for such applicable 

6 calendar quarter, and for any other quarter occur7 ring during such emergency during which such enti8 ty was so registered as a covered entity described in 

9 subparagraph (O) of such subsection, provided that, 

10 for such applicable calendar quarter and any such 

11 other quarter, the entity met the requirements de12 scribed in subsection (a)(5) of such section and, be13 ginning on the date on which the entity makes such 

14 election, the entity meets the requirement described 

15 in subparagraph (L)(iii) of subsection (a)(4) of such 

16 section. 

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 or during the COVID–19 pub2 lic health emergency, submitted an application 

3 for participation in such program as a covered 

4 entity described in subparagraph (L), (M), or 

5 (O) of section 340B(a)(4) of the Public Health 

6 Service 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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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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