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.
Bill: S.773 | Sponsor: Sen. Thune, John (R-SD)
Policy area: Health

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.

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.

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

SECTION 1. ELIGIBILITY EXCEPTION FOR THE DRUG DISCOUNT PROGRAM DUE TO 
              THE COVID-19 PUBLIC HEALTH EMERGENCY.

    (a) In General.--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) and is in 
compliance with all other requirements of the program under such 
section, but that, for such calendar quarter, does not meet the 
applicable requirement for the disproportionate share adjustment 
percentage described in subsection (c), shall be deemed a covered 
entity under such respective subparagraph for such applicable calendar 
quarter.
    (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 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'' means a calendar quarter for which 
        eligibility for the drug discount program under section 340B of 
        the Public Health Service Act (42 U.S.C. 256b) is based on a 
        cost reporting period for which the COVID-19 public health 
        emergency is in effect for all or part of such cost reporting 
        period.
            (2) Covered entity.--The term ``covered entity'' has the 
        meaning given such term in section 340B(a)(4) of the Public 
        Health Service Act (42 U.S.C. 256b(a)(4)).
            (3) COVID-19 public health emergency.--The term ``COVID-19 
        public health emergency'' means the public health emergency 
        declared by the Secretary of Health and Human Services under 
        section 319 of the Public Health Service Act (42 U.S.C. 247d) 
        on January 31, 2020, with respect to COVID-19.
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