Press Release

Welch Leads Bill to Lower Prescription Drug Costs for Health Care Providers Serving America’s Most Vulnerable, Rural, and Low-Income Patients 

Jul 23, 2025

WASHINGTON, D.C. — U.S. Senators Peter Welch (D-Vt.) and Jeff Merkley (D-Ore.) today introduced the bicameral 340B Pharmaceutical Access To Invest in Essential, Needed Treatments & Support (PATIENTS) Act, legislation that would protect the 340B drug pricing program and ensure patients—especially those in lower income and rural communities—can continue care with providers who utilize the program.  

Senator Welch led the legislation in 2024. U.S. Representative Doris Matsui (D-CA-07) has led companion legislation in the House of Representatives. 

“Rural America is hit by two crises: affordability and access to care. Programs like 340B are vital tools to address this problem, helping rural patients and communities access the affordable medical and social services they need. President Trump and Republicans’ tax bill has already threatened access to rural care, which makes protecting tools like 340B all-the-more critical,” said Senator Welch. “I’m all for making sure the 340B program is working the way it’s intended, but Big Pharma has been trying for years to get rid of it altogether. This commonsense bill secures access to this funding stream and supports rural and vulnerable patients.” 

“As I hold town hall meetings in each of Oregon’s 36 counties, I’ve heard time and again from Oregonians about sky-high prescription drug prices. This isn’t a red county or blue county issue, and the 340B program helps patients in every corner of Oregon get the care they need—especially rural communities,” said Senator Merkley. “Our bill fights back against Big Pharma’s attempts to slash this lifeline for rural and lower income Oregonians. Those Oregonians are denied access to certain discounts at community or specialty pharmacies. We need to strengthen the 340B program so that patients can benefit no matter where they live.” 

“After Republicans cut almost $1 trillion from our health care safety net, it’s more important than ever that we preserve and strengthen the remaining lifelines keeping our providers afloat,” said Congresswoman Matsui. “That’s why I’m reintroducing my legislation to protect the 340B program today. For more than 30 years, the 340B program has been a lifeline for our nation’s most vulnerable patients – providing free or discounted prescription drugs and important services at no cost to taxpayers. Unfortunately, Big Pharma is increasingly finding ways to undercut this mission and reduce patient access to lifesaving services. The 340B PATIENTS Act sets clear ground rules to prevent manufacturers from continuing these practices and strengthen the 340B program for years to come.” 

For more than 30 years, the 340B program has helped safety-net providers like rural community hospitals, critical access hospitals, and community health centers purchase outpatient prescription drugs at reduced prices from drug manufacturers at no cost to the taxpayer. Savings from the 340B program help providers expand critical services such as mental health care, substance-use disorder treatments, and emergency services, to support the most vulnerable patients in their community without the need for additional federal funding. During the COVID-19 pandemic, pharmaceutical manufacturers began announcing restrictions on the 340B program by limiting the number of pharmacies 340B providers can use to dispense the medications to patients. These restrictions disproportionately impact rural states, which are struggling with a decline in pharmacies. 

The 340B Pharmaceutical Access To Invest in Essential, Needed Treatments & Support (PATIENTS) Act would:  

  • Clarify that manufacturers are required to offer 340B discount prices to covered entities regardless of the manner or location in which a drug is dispensed, including if a covered entity uses a contract pharmacy to dispense 340B drugs to the entity’s patients.  
  • Ensure that manufacturers cannot place conditions on the ability of a covered entity to purchase and use 340B drugs, regardless of the manner or location in which the drug is dispensed, including through contract pharmacies.  
  • Impose civil monetary penalties on manufacturers that violate these statutory requirements and prohibition.  

The 340B PATIENTS Act is endorsed by 340B Health, Advocates for Community Health, AIDS Healthcare Foundation, America’s Essential Hospitals (AEH), American Hospital Association (AHA), American Society of Health-System Pharmacists (ASHP), Association of American Medical Colleges (AAMC), Bi-State Primary Care Association, Catholic Health Association of the United States, Children’s Hospital Association (CHA), National Rural Health Association (NRHA), AIDS United, 340B Hallway, 340B Matters, The Craneware Group, University of California Health, California Hospital Association. 

Learn more about the 340B PATIENTS Act.  

Read and download the full text of the bill.  

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