No 340B Savings for Transgender Care Act
- Bill Number
- H.R. 2197
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Health
- Status
- Introduced
- Latest Action
- 2025-03-18: Referred to the House Committee on Energy and Commerce.
- Last Updated
- 2025-06-11T08:05:55Z
AI-Generated Summary
Purpose
This legislation aims to restrict how certain healthcare providers use financial savings from a federal drug discount program, specifically prohibiting the use of those savings to fund medical services related to gender transition for transgender individuals.
Key Provisions
- Prohibition on Fund Usage: Covered entities participating in the 340B Drug Pricing Program (a federal initiative that allows eligible healthcare providers, such as safety-net hospitals and clinics, to purchase outpatient drugs at discounted prices) cannot use the savings generated from these discounts to pay for:
- Sex reassignment surgeries intended to alter the gender of a transgender individual.
- Hormone treatments intended to alter the gender of a transgender individual.
- Definitions:
- Covered entity: Refers to eligible providers under the 340B program, like certain hospitals and clinics serving low-income or uninsured patients.
- Services described: Specifically limited to the two types of gender-related medical interventions mentioned above.
- The bill amends Section 340B(a)(4) of the Public Health Service Act by adding a new subparagraph (E) to enforce this restriction.
Significant Changes to Existing Law
- Introduces a targeted ban on the use of 340B savings for specific transgender healthcare services, which was not previously addressed in the Public Health Service Act.
- Previously, 340B savings could be used flexibly by covered entities to support various patient care needs, without such categorical restrictions on particular treatments.
Potential Impacts
- On Government Agencies: The Department of Health and Human Services (HHS), which oversees the 340B program, would need to implement enforcement mechanisms, such as audits or compliance reporting, to ensure covered entities adhere to the prohibition. This could increase administrative burdens.
- On Citizens: Transgender individuals relying on 340B-participating providers may face reduced access to subsidized gender-affirming care, potentially increasing out-of-pocket costs or limiting treatment options at safety-net facilities. Other patients at these entities might indirectly benefit if savings are redirected to non-prohibited services.
- On International Relations: No direct impacts, as the bill focuses on domestic healthcare funding.
Main Stakeholders Affected
- 340B Covered Entities: Safety-net hospitals, clinics, and other eligible providers that depend on drug discount savings to stretch limited budgets for patient care.
- Transgender Individuals: Patients seeking gender-affirming surgeries or hormone therapies, who may experience barriers to affordable treatment.
- Healthcare Providers and Advocates: Doctors, clinics, and organizations providing transgender care, who could see funding constraints.
- Taxpayers and Policymakers: Indirectly affected through the allocation of federal healthcare subsidies.
Notable Legal, Constitutional, or Political Implications
- Legal: Could face challenges under anti-discrimination laws (e.g., those protecting access to healthcare based on gender identity) or equal protection clauses, as it singles out specific medical services. Enforcement might require new regulations from HHS to define compliance without overreach.
- Constitutional: Potential scrutiny for infringing on privacy rights or equal protection under the 14th Amendment, given the focus on transgender-specific care.
- Political: Highlights ongoing debates over transgender rights, federal funding priorities, and the scope of public health programs; may polarize discussions on healthcare equity versus fiscal restrictions on certain treatments.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Johnson, Dusty [R-SD-At Large]
Cosponsors (9)
Rep. Scott, Austin [R-GA-8], Rep. Crenshaw, Dan [R-TX-2], Rep. Rulli, Michael A. [R-OH-6], Rep. Ezell, Mike [R-MS-4], Rep. Bice, Stephanie I. [R-OK-5], Rep. Moore, Barry [R-AL-1], Rep. Rose, John W. [R-TN-6], Rep. Williams, Roger [R-TX-25], Rep. Finstad, Brad [R-MN-1]
Recent Actions
- 2025-03-18: Referred to the House Committee on Energy and Commerce.
- 2025-03-18: Introduced in House
- 2025-03-18: Introduced in House
Bill Versions
- No 340B Savings for Transgender Care Act — issued 2025-03-18 — PDF (3 pages)