Title: 340B Optimization Act
Policy area: Health

Summary:
340B Optimization Act
This bill requires federally-qualified health centers, children's hospitals, and other covered entities participating in the 340B drug discount program to report annually on information regarding low-income outpatient utilization rates.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5598 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 5598

       To amend the Public Health Service Act to require certain 
 disproportionate share hospital covered entities under the 340B drug 
    discount program to submit to the Secretary of Health and Human 
Services reports on low-income utilization rates of outpatient hospital 
                  services furnished by such entities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 24, 2018

    Mr. Carter of Georgia (for himself and Mr. Collins of New York) 
 introduced the following bill; which was referred to the Committee on 
                          Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
       To amend the Public Health Service Act to require certain 
 disproportionate share hospital covered entities under the 340B drug 
    discount program to submit to the Secretary of Health and Human 
Services reports on low-income utilization rates of outpatient hospital 
                  services furnished by such entities.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``340B Optimization Act''.

SEC. 2. REQUIRING 340B DRUG DISCOUNT PROGRAM REPORTS BY DSH HOSPITAL 
              COVERED ENTITIES ON LOW-INCOME UTILIZATION RATE OF 
              OUTPATIENT HOSPITAL SERVICES.

    (a) In General.--Section 340B(d)(2) of the Public Health Service 
Act (42 U.S.C. 256b(d)(2)) is amended--
            (1) in subparagraph (B)(i), by inserting before the period 
        at the end the following: ``, including, with respect to such 
        updates made on or after January 1, 2020, by requiring covered 
        entities described in subsection (a)(4)(L) to submit (and to so 
        regularly update) information described in subparagraph (C)''; 
        and
            (2) by adding at the end the following new subparagraph:
                    ``(C) Information on low-income utilization rate of 
                outpatient hospital services.--
                            ``(i) In general.--For purposes of 
                        subparagraph (B)(i), the information described 
                        in this subparagraph, with respect to a covered 
                        entity described in subsection (a)(4)(L) and an 
                        update under such subparagraph (B)(i), is--
                                    ``(I) the low-income outpatient 
                                utilization rate of such covered entity 
                                for the most recent fiscal year; and
                                    ``(II) the low-income outpatient 
                                utilization rate of off-site outpatient 
                                facilities, clinics, eligible off-site 
                                locations, and associated sites of such 
                                entity identified as child sites of 
                                such entity pursuant to the 
                                identification system under 
                                subparagraph (B)(iv) for the most 
                                recent fiscal year.
                            ``(ii) Low-income outpatient utilization 
                        rate defined.--In this subparagraph, the term 
                        `low-income outpatient utilization rate' has 
                        the meaning given the term `low-income 
                        utilization rate' under paragraph (3) of 
                        section 1923(b) of the Social Security Act, 
                        except that--
                                    ``(I) clauses (i) and (ii) of 
                                subparagraph (A) of such paragraph 
                                shall be applied as if--
                                            ``(aa) each reference to 
                                        `patient services' were a 
                                        reference to `patient services 
                                        furnished on an outpatient 
                                        basis'; and
                                            ``(bb) for purposes of 
                                        clause (i)(II) of this 
                                        subparagraph, each reference to 
                                        `hospital' were a reference to 
                                        `off-site outpatient 
                                        facilities, clinics, eligible 
                                        off-site locations, and 
                                        associated sites of the 
                                        hospital that are identified as 
                                        child sites of the hospital 
                                        pursuant to the identification 
                                        system under section 
                                        340B(d)(2)(B)(iv) of the Public 
                                        Health Service Act'; and
                                    ``(II) clauses (i) and (ii) of 
                                subparagraph (B) of such paragraph 
                                shall be applied as if--
                                            ``(aa) each reference to 
                                        `inpatient hospital services' 
                                        were a reference to `outpatient 
                                        hospital services'; and
                                            ``(bb) for purposes of 
                                        clause (i)(II) each reference 
                                        to `hospital's charges' were a 
                                        reference to `charges of the 
                                        off-site outpatient facilities, 
                                        clinics, eligible off-site 
                                        locations, and associated sites 
                                        of the hospital that are 
                                        identified as child sites of 
                                        the hospital pursuant to the 
                                        identification system under 
                                        section 340B(d)(2)(B)(iv) of 
                                        the Public Health Service 
                                        Act'.''.
    (b) Annual Reports.--Not later than January 1, 2021, and annually 
thereafter, the Administrator of the Health Resources and Services 
Administration shall submit to Congress a report on information 
submitted by covered entities for the previous year pursuant to the 
amendments made by subsection (a).
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