AIDS Healthcare Foundation
The SECURE 340B Act: A Pharma-Friendly Bill Designed to Shrink 340B For Rural Providers
Make no mistake about what the SECURE 340B Act (H.R. 9599) actually does: its core purpose is to shrink the 340B program and reduce the number of discounted prescriptions drug companies have to provide. Here's what that means for rural hospitals and clinics, starting with the most damaging provisions:

1. A Narrower Patient Definition Cuts Off Access

The bill rewrites who counts as an eligible "patient" for 340B pricing. A narrower definition means fewer patients qualify, and fewer qualifying patients means fewer discounted prescriptions. This is the single most damaging piece of the bill: less money coming in means less money available for charity care, staffing, and services that keep rural facilities open.

2. New Contract Pharmacy Restrictions Choke Off Delivery

The bill also adds new restrictions on how covered entities can use contract pharmacies. For many rural providers without an in-house pharmacy, contract pharmacies are the only practical way to get discounted drugs to patients. Restricting these arrangements cuts off a critical delivery channel and, again, shrinks the number of prescriptions that ever reach 340B pricing.

3. "Transparency" Rules That Just Raise Costs

The bill layers on new reporting mandates and a brand-new third-party clearinghouse to process 340B claims data. None of this improves patient care. It raises the cost of participating in the program, and that money has to come from somewhere. For a rural provider on a shoestring budget, that somewhere is patient services. It's also redundant: the federal government already manages 340B claims data through HRSA's Office of Pharmacy Affairs. There's no need to pay a third party to do a job the government already does.

4. The Rebate "Pause" Isn't Relief. It Sets Up Rebates to Happen

The bill is being sold as offering covered entities a "pause" on converting discounts to rebates. That's misleading. It's a four-year pause on implementing rebate conversion, not a rejection of rebates. The bill specifically permits the shift to rebates and makes it more likely to happen down the road. Once that shift occurs, every 340B claim becomes something a manufacturer can dispute and delay, forcing providers to wait on repayment instead of getting their savings upfront.

Don't Be Fooled by the "Bipartisan Compromise" Label

Supporters call this a bipartisan compromise. Having sponsors from both parties doesn't make a bill balanced. A real compromise would come from legislators who support covered entities negotiating, give-and-take, with legislators who support drug makers. This bill isn't that: it locks in permanent, structural wins for drug manufacturers, including a narrower patient definition, contract pharmacy restrictions, and costly new reporting burdens, while covered entities get only a temporary pause on a change manufacturers are still set up to get anyway.

What You Can Do

The bill is still in committee, so there's time to act:

  1. Use this action to contact your members of Congress and ask them to oppose H.R. 9599.
  2.  Share this with your board and staff and other advocates.
  3. Team up with 340B Health, AHA, or NRHA to push back together.

The 340B program exists to help safety-net providers stretch limited dollars for their patients. This bill moves in the opposite direction.

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