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.

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. Eligibility exception for the drug discount program due to the COVID–19 public health emergency (a) In general (1) DSH adjustment percentage treatment Notwithstanding any other provision of law, a hospital described in subsection (b) that, for an applicable calendar quarter, otherwise meets the requirements for being a covered entity under subparagraph (L), (M), or (O) of subsection (a)(4) of section 340B of the Public Health Service Act ( 42 U.S.C. 256b (2) Treatment of certain entities Notwithstanding any other provision of law, a hospital described in subsection (b) that, on the day before the first day of the COVID–19 public health emergency (or at any point during such emergency), was a covered entity described in subparagraph (L) of subsection (a)(4) of section 340B of the Public Health Service Act ( 42 U.S.C. 256b (b) Hospitals A hospital described in this subsection is— (1) an entity that, on the day before the first day of the COVID–19 public health emergency, was a covered entity described in subparagraph (L), (M), or (O) of subsection (a)(4) of section 340B of the Public Health Service Act participating in the drug discount program under such section; or (2) an entity that— (A) prior to or during the COVID–19 public health emergency, submitted an application for participation in such program as a covered entity described in subparagraph (L), (M), or (O) of section 340B(a)(4) of the Public Health Service Act; (B) prior to or during such emergency, was approved for such participation; and (C) during such emergency, began participating in such program. (c) Applicable requirement for disproportionate share adjustment percentage The applicable requirement for the disproportionate share adjustment percentage described in this subsection is— (1) in the case of a hospital described in subsection (a) that otherwise meets the requirements under subparagraph (L) or (M) of section 340B(a)(4) of the Public Health Service Act, the requirement under subparagraph (L)(ii) of such section; and (2) in the case of a hospital described in subsection (a) that otherwise meets the requirements under subparagraph (O) of such section 340B(a)(4), the requirement with respect to the disproportionate share adjustment percentage described in such subparagraph (O). (d) Definitions In this section: (1) Applicable calendar quarter The term applicable calendar quarter 42 U.S.C. 256b (2) Covered entity The term covered entity 42 U.S.C. 256b(a)(4) (3) COVID–19 public health emergency The term COVID–19 public health emergency 42 U.S.C. 247d

Summary: This bill waives certain eligibility requirements for hospitals participating in the 340B drug discount program (i.e., a program that allows entities to receive covered outpatient drugs at reduced prices from manufacturers) during the COVID-19 (i.e., coronavirus disease 2019) public health emergency. Specifically, the bill waives the required minimum proportion of low-income patients served for hospitals that began participating in the program during or prior to the COVID-19 emergency.