The new ‘SUSTAIN 340B Act’ seeks to protect nonprofit health providers from industry greed and expand the public health safety net

AIDS Healthcare Foundation (AHF) welcomed the release of draft legislation by a bipartisan group of six U.S. Senators attempting to address drug industry and insurance attacks on the 340B program. “340B” is a federal program that allows nonprofit health care providers like rural hospitals, community clinics, and HIV/AIDS clinics to buy prescription drugs at a discount and use those savings to expand and provide more and better services to underserved Americans. Since its inception in 1992, the program has been under constant attack from drug companies and health insurers (and their henchmen, pharmacy benefits managers--PBMs) trying to take the discounts for themselves and impoverish these providers.

The new SUSTAIN 340B Act addresses several issues in the 340B program. Most importantly, it covers the primary ways PhRMA and insurers attack the program -- limiting its size, placing restrictions on provider access to the discounts, delaying payments of discounts, and insurers taking the discount by discriminatorily reimbursing 340B participants less for drugs.

“This draft legislation was just released yesterday, the devil is always in the details, and we are still reviewing it,” said Tom Myer, AHF General Counsel and Chief of Public Affairs. “However, from what we have seen so far, we are optimistic that this can be a vehicle to firmly protect the 340B program and the communities it serves from the predatory action of drug companies and insurers. We look forward to engaging and working with this bipartisan group of Senators to make this a reality.”

AIDS Healthcare Foundation (AHF), the world’s largest HIV/AIDS healthcare organization, provides cutting-edge medicine and advocacy to more than 3.2 million individuals across 50 countries, including the U.S. and in Africa, Latin America/Caribbean, the Asia/Pacific Region, and Eastern Europe. In January 2025, AHF received the MLK, Jr. Social Justice Award, The King Center’s highest recognition for an organization leading work in the social justice arena. To learn more about AHF, visit us online at AIDShealth.org, find us on Facebook, and follow us on Instagram, Twitter, and TikTok.

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From what we have seen so far, AHF is optimistic that this new SUSTAIN 340B Act can be a vehicle to firmly protect the 340B program and the communities it serves from the self-serving and predatory actions of drug companies and insurers.