It's a busy week on Capitol Hill with the July 4 holiday and Congressional recess approaching quickly with much on Congress's to-do list.

Senate Committee on Health, Education, Labor, and Pensions staff have alerted our team that S. 2355, the Patients Deserve Price Tags Act, is rapidly moving toward a markup. While we appreciate the committee's interest in health care affordability, we have significant concerns with the bill's administrative burden on hospitals, especially those serving a safety net role in their communities. The association will provide feedback in advance of the July 2 deadline and encourage any members with questions to reach out to Julia Cecil ([email protected]).

340B

Reps. Doris Matsui (D-Calif.) and Jack Bergman (R-Mich.) are circulating a letter in the House urging HHS Secretary Kennedy and HRSA Administrator Engels to use any enforcement mechanisms available against Eli Lilly's move to cut off 340B pricing and to restore 340B pricing and clarify their stances on manufacturers tying claims data submission to 340B pricing availability. The deadline is now the close of business on Tuesday, June 30. Please share with congressional staff this Quill link that enables them to access and sign on to the letter. The best point of contact for any questions is Emma Sheffert with Rep. Matsui at [email protected]. Having a strong show of support on this letter is important to show a unified front against pharmaceutical manufacturers seeking to undercut this program.

The association recently met with Reps. Peters (D-Calif.) and Joyce (R-PA.), who are imminently planning to introduce 340B legislation that would alter patient definition, child sites, and create a third-party clearinghouse, among other provisions. The association is preparing feedback for lawmakers to push back on changes that run contrary to the original congressional intent of the program. Member hospitals are encouraged to reach out to those offices and engage with them about why 340B, as it stands, is working for the safety net t.

Chairman of the Senate Health, Education, Labor, and Pensions (HELP) Committee Bill Cassidy (R-La.) released a legislative draft aimed at reforming the 340B Drug Pricing Program June 25. The association put out a statement thanking Chariman Cassidy for his interest in the program, underscoring our interest in ensuring no burdensome requirements are placed on 340B hospitals, and referring to constant, pernicious moves by drug manufacturers to undercut the program. This draft legislation follows the Chairman's 2025 report on how covered entities use the program and an October 2025 HELP committee hearing. There is an August 28 deadline for stakeholder feedback. The association is currently reviewing the draft legislation and will offer a response and recommendations in advance of the deadline.

Committee Activity Last Week

The House Energy and Commerce Oversight Subcommittee held a hearing on state Medicaid program integrity to examine "fraud risks and oversight deficiencies" on June 25. Medicaid directors from New York, Ohio, California, and Minnesota testified. Subcommittee Republicans focused their attention on the recent Medicaid fraud takedowns that have occurred in numerous states, asking witnesses to explain their processes and safeguards for identifying and eliminating fraud in the state Medicaid systems. Subcommittee Democrats categorized CMS' attempts to eliminate fraud within Medicaid systems, specifically through immediate deferrals of federal payments, as targeted, partisan attacks. Democrats addressed their concerns that CMS' efforts aligned with the greater Trump administration's policy to target states that do not agree politically with the administration.

The Joint Economic Committee held a June 24 hearing focused on combating health care fraud and leakage intended to strengthen the program's integrity. Committee members inquired about strategies to reduce fraud and the key reforms to address inefficiencies in federal health care systems. The witnesses - individuals with experience in health care fraud research, health policy, and law - discussed structures within federal health programs that incentivize states, insurance companies, and provider organizations to engage in fraudulent and exploitative activities, including the risk-scoring payment model, the broker system, and vertical integration. Notably, Brian Blase, founder and president of the Paragon Health Institute that is closely aligned with the Trump Administration, was one of the witnesses.

The House Committee on Energy and Commerce Subcommittee on Health held a June 25 markup of 15 bills, all of which were passed via voice vote. There were several bills dealing with hospital transparency, which the association continues to advocate against citing massive administrative burden and unintended consequences for safety net providers. The hearing also covered legislation surrounding drug abuse and transparency in Medicare Advantage.

The House is in session this week from Monday through Thursday, with the Senate already out on recess.

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