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.

II 117TH CONGRESS 1ST SESSION S. 773 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. IN THE SENATE OF THE UNITED STATES MARCH 16, 2021 Mr. THUNE (for himself, Ms. STABENOW, Mr. PORTMAN, Ms. BALDWIN, Mrs. CAPITO, and Mr. CARDIN) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 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 main- tain eligibility for such program, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 04:31 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S773.IS S773 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 773 IS SECTION 1. ELIGIBILITY EXCEPTION FOR THE DRUG DIS- 1 COUNT PROGRAM DUE TO THE COVID–19 2 PUBLIC HEALTH EMERGENCY. 3 (a) IN GENERAL.—Notwithstanding any other provi- 4 sion of law, a hospital described in subsection (b) that, 5 for an applicable calendar quarter, otherwise meets the re- 6 quirements for being a covered entity under subparagraph 7 (L), (M), or (O) of subsection (a)(4) of section 340B of 8 the Public Health Service Act (42 U.S.C. 256b) and is 9 in compliance with all other requirements of the program 10 under such section, but that, for such calendar quarter, 11 does not meet the applicable requirement for the dis- 12 proportionate share adjustment percentage described in 13 subsection (c), shall be deemed a covered entity under 14 such respective subparagraph for such applicable calendar 15 quarter. 16 (b) HOSPITALS.—A hospital described in this sub- 17 section is— 18 (1) an entity that, on the day before the first 19 day of the COVID–19 public health emergency, was 20 a covered entity described in subparagraph (L), (M), 21 or (O) of subsection (a)(4) of section 340B of the 22 Public Health Service Act participating in the drug 23 discount program under such section; or 24 (2) an entity that— 25 VerDate Sep 11 2014 04:31 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S773.IS S773 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 773 IS (A) prior to the COVID–19 public health 1 emergency, submitted an application for partici- 2 pation in such program as a covered entity de- 3 scribed in subparagraph (L), (M), or (O) of sec- 4 tion 340B(a)(4) of the Public Health Service 5 Act; 6 (B) prior to or during such emergency, 7 was approved for such participation; and 8 (C) during such emergency, began partici- 9 pating in such program. 10 (c) APPLICABLE REQUIREMENT FOR DISPROPOR- 11 TIONATE SHARE ADJUSTMENT PERCENTAGE.—The appli- 12 cable requirement for the disproportionate share adjust- 13 ment percentage described in this subsection is— 14 (1) in the case of a hospital described in sub- 15 section (a) that otherwise meets the requirements 16 under subparagraph (L) or (M) of section 17 340B(a)(4) of the Public Health Service Act, the re- 18 quirement under subparagraph (L)(ii) of such sec- 19 tion; and 20 (2) in the case of a hospital described in sub- 21 section (a) that otherwise meets the requirements 22 under subparagraph (O) of such section 340B(a)(4), 23 the requirement with respect to the disproportionate 24 VerDate Sep 11 2014 04:31 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S773.IS S773 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 773 IS share adjustment percentage described in such sub- 1 paragraph (O). 2 (d) DEFINITIONS.—In this section: 3 (1) APPLICABLE CALENDAR QUARTER.—The 4 term ‘‘applicable calendar quarter’’ means a cal- 5 endar quarter for which eligibility for the drug dis- 6 count program under section 340B of the Public 7 Health Service Act (42 U.S.C. 256b) is based on a 8 cost reporting period for which the COVID–19 pub- 9 lic health emergency is in effect for all or part of 10 such cost reporting period. 11 (2) COVERED ENTITY.—The term ‘‘covered en- 12 tity’’ has the meaning given such term in section 13 340B(a)(4) of the Public Health Service Act (42 14 U.S.C. 256b(a)(4)). 15 (3) COVID–19 PUBLIC HEALTH EMERGENCY.— 16 The term ‘‘COVID–19 public health emergency’’ 17 means the public health emergency declared by the 18 Secretary of Health and Human Services under sec- 19 tion 319 of the Public Health Service Act (42 20 U.S.C. 247d) on January 31, 2020, with respect to 21 COVID–19. 22 Æ VerDate Sep 11 2014 04:31 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S773.IS S773 pbinns on DSKJLVW7X2PROD with BILLS