August 6, 2026 – ARLINGTON, VA The Alliance for Safe Biologic Medicines (ASBM) commends Senators Jerry Moran (R-KS), Tammy Baldwin (D-WI), Shelley Moore Capito (R-WV), Tim Kaine (D-VA), John Boozman (R-AR), and John Hickenlooper (D-CO) for introducing the bipartisan Supporting Underserved and Strengthening Transparency, Accountability, and Integrity Now and for the Future of 340B Act, or SUSTAIN 340B Act.
The 340B Drug Pricing Program was created to help safety-net providers stretch limited resources and expand access to care for low-income, underserved, and medically vulnerable patients. Over time, however, unclear requirements, limited transparency, and the rapid growth of contract-pharmacy and other arrangements have created concerns about whether program savings are consistently benefiting the patients 340B was designed to serve.
Michael Reilly, Executive Director of ASBM and former Associate Deputy Secretary of the U.S. Department of Health and Human Services, praised the bill’s introduction:
“The need for 340B reform has been widely recognized for years, but meaningful action has too often been delayed by disagreement over how to address the program’s problems. The SUSTAIN 340B Act represents a thoughtful bipartisan solution to this longstanding challenge. It protects the program for the safety-net providers and vulnerable patients who rely on it while adding the transparency, accountability, and patient protections necessary to ensure that 340B savings are used as Congress intended.”
The legislation would:
- Establish clear federal standards for contract pharmacies, eligible 340B patients, covered services, and hospital child sites.
- Require covered entities to report how they generate and use 340B savings, including their provision of charity care and patient financial assistance.
- Strengthen audits, enforcement, and safeguards against drug diversion and duplicate discounts.
- Preserve point-of-purchase discounts, end the current rebate-model pilot, and establish an independent claims-data clearinghouse.
- Protect covered entities and pharmacies from discriminatory treatment based solely on their participation in 340B.
ASBM has worked to educate patients, health care professionals, and policymakers about the need for responsible 340B reform. ASBM and the Global Colon Cancer Association recently hosted the webinar “Reforming 340B: Ensuring the Discount Program Delivers for Patients,” which brought together patients, health care providers, policy experts, and former HHS officials who helped oversee the program—to examine how 340B has evolved and consider reforms that would restore transparency, accountability, and a stronger patient focus.
ASBM urges Congress to move swiftly to enact the SUSTAIN 340B Act. These reforms would provide long-overdue clarity and accountability while preserving the program’s essential support for legitimate safety-net providers and refocusing 340B on its core mission: helping vulnerable patients obtain the medicines and care they need.
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