On October 11, 2017, the House Energy & Commerce’s Oversight and Investigations Subcommittee held a hearing entitled “Examining How Covered Entities Utilize the 340B Drug Pricing Program.” This was the Subcommittee’s second hearing of the year on the 340B Drug Pricing Program (“340B Program”). The hearing featured a single panel of representatives from covered entity organizations.

While the July hearing focused on the Health Resources and Services Administration’s (“HRSA”) ability to conduct effective oversight of the 340B program, the October 11 hearing centered on covered entities’ efforts track and utilize savings derived from the 340B Program. Subcommittee Republicans expressed concerns surrounding covered entities’ current reporting obligations, as well as the need for additional transparency regarding covered entities’ use of 340B Program savings. In his opening remarks, Committee Chairman Greg Walden (R-OR) stated, “This lack of transparency and coherent reporting requirements is concerning. Frankly without the data, it’s hard to know this program is working as Congress intended when it was created.” 

Multiple members raised similar concerns, and in some instances asked witnesses to provide additional 340 program savings-related data to the Subcommittee. Rep. Ryan Costello (R-PA) asked the witnesses whether they would have any objections to “creating an accounting mechanism” to better ensure 340B Program compliance.

Subcommittee Democrats, while recognizing the need to ensure transparency and adequate reporting, mainly focused their statements and questions on the importance of the 340B Program in providing additional care to vulnerable patient populations. As in the July hearing, the broader issue of prescription drug pricing was raised by multiple Members, with Rep. Jan Schakowsky (D-IL) noting that, “it is well past time that this committee talk about how we're going to lower drug prices.”

A link to the hearing and accompanying documents may be found here and here.