Community Health Center Drug Pricing Protection Act
- Bill Number
- H.R. 7391
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Health
- Status
- Introduced
- Latest Action
- 2026-02-05: Referred to the House Committee on Energy and Commerce.
- Last Updated
- 2026-07-03T08:06:29Z
AI-Generated Summary
Purpose
The "Community Health Center Drug Pricing Protection Act" (H.R. 7391) aims to protect Federally-qualified health centers (FQHCs)—community-based clinics that provide primary care to underserved populations—from paying more than the discounted "ceiling price" for outpatient drugs under the 340B Drug Pricing Program at the time of purchase. The 340B program requires drug manufacturers to sell certain outpatient drugs to eligible health care providers at significantly reduced prices to help stretch limited resources.
Key Provisions
- Amendment to Section 340B(a): Adds a new paragraph (11) to the Public Health Service Act, prohibiting the Secretary of Health and Human Services (HHS) from entering into agreements with drug manufacturers that require FQHCs to pay more than the 340B ceiling price (the maximum discounted price) for covered outpatient drugs at the point of purchase.
- Rule of Construction: Explicitly bans any payment arrangements where FQHCs pay above the ceiling price upfront, followed by later adjustments like rebates or reimbursements. This ensures discounts are applied immediately.
- Effective Dates:
- Applies to all drug purchases on or after the date of enactment.
- Existing manufacturer agreements must comply immediately, or they will not meet 340B requirements.
Significant Changes to Existing Law
- Under current 340B rules, some manufacturers have offered deferred discounts (e.g., via rebates after purchase) to FQHCs, potentially allowing initial payments above the ceiling price. This bill eliminates such practices for FQHCs, mandating upfront adherence to the ceiling price.
- It targets only FQHCs (a specific type of "covered entity" under 340B) and does not alter rules for other entities like hospitals or clinics.
Potential Impacts
- On Citizens: FQHC patients, often low-income or uninsured individuals in rural or urban underserved areas, may benefit from more predictable and lower operational costs for health centers, potentially leading to expanded services or reduced patient fees without increasing drug prices.
- On Government Agencies: The HHS Secretary's role in negotiating and overseeing 340B agreements will be constrained, requiring stricter enforcement to ensure compliance, which could increase administrative oversight.
- On International Relations: No direct impacts, as the bill focuses on domestic drug pricing for U.S. health providers.
- Overall, it could reduce financial burdens on safety-net providers, helping maintain access to affordable medications amid rising drug costs.
Main Stakeholders Affected
- Federally-Qualified Health Centers (FQHCs): Primary beneficiaries, gaining guaranteed upfront discounts to support care for vulnerable populations.
- Drug Manufacturers: Required to provide immediate discounts without deferred payment options, potentially affecting their revenue models and compliance costs.
- Department of Health and Human Services (HHS): Tasked with enforcing the changes in manufacturer agreements.
- Patients and Communities Served by FQHCs: Indirectly affected through improved affordability and access to medications.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces the original intent of the 340B program (established in 1992) to provide immediate savings to safety-net providers, potentially reducing litigation over contract disputes between FQHCs and manufacturers. It may invite challenges from drug companies arguing it limits contractual flexibility, but it aligns with federal authority under the Public Health Service Act.
- Constitutional: No apparent issues; the bill operates within Congress's commerce clause powers to regulate interstate drug pricing and health care.
- Political: Demonstrates bipartisan support (introduced by a diverse group of 26 representatives from both parties), highlighting consensus on protecting community health access. It could influence broader 340B reforms amid ongoing debates over program integrity and manufacturer obligations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (52)
Rep. Auchincloss, Jake [D-MA-4], Rep. Moulton, Seth [D-MA-6], Rep. Lynch, Stephen F. [D-MA-8], Rep. Smucker, Lloyd [R-PA-11], Rep. Frankel, Lois [D-FL-22], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Mann, Tracey [R-KS-1], Rep. Mrvan, Frank J. [D-IN-1], Rep. Balint, Becca [D-VT-At Large], Rep. Davids, Sharice [D-KS-3], Rep. Maloy, Celeste [R-UT-2], Rep. Bresnahan, Robert P. [R-PA-8], Rep. Cleaver, Emanuel [D-MO-5], Rep. Ansari, Yassamin [D-AZ-3], Rep. Huizenga, Bill [R-MI-4], Rep. McBride, Sarah [D-DE-At Large], Rep. Titus, Dina [D-NV-1], Rep. Tlaib, Rashida [D-MI-12], Rep. Neguse, Joe [D-CO-2], Rep. Crank, Jeff [R-CO-5], Rep. Lee, Susie [D-NV-3], Rep. Lucas, Frank D. [R-OK-3], Rep. Larsen, Rick [D-WA-2], Rep. Cohen, Steve [D-TN-9], Rep. Cole, Tom [R-OK-4], Rep. Rogers, Harold [R-KY-5], Rep. Tokuda, Jill N. [D-HI-2], Rep. Torres, Ritchie [D-NY-15], Rep. Perez, Marie Gluesenkamp [D-WA-3], Rep. Bishop, Sanford D. [D-GA-2], Rep. Amodei, Mark E. [R-NV-2], Rep. Dean, Madeleine [D-PA-4], Rep. Schmidt, Derek [R-KS-2], Rep. Budzinski, Nikki [D-IL-13], Rep. Scott, Austin [R-GA-8], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Riley, Josh [D-NY-19], Rep. Fields, Cleo [D-LA-6], Rep. De La Cruz, Monica [R-TX-15], Rep. Case, Ed [D-HI-1], Rep. Hayes, Jahana [D-CT-5], Rep. Thanedar, Shri [D-MI-13], Rep. Ruiz, Raul [D-CA-25], Rep. Miller, Carol D. [R-WV-1], Rep. Tonko, Paul [D-NY-20], Rep. Taylor, David J. [R-OH-2], Rep. Begich, Nicholas J. [R-AK-At Large], Rep. Grijalva, Adelita S. [D-AZ-7], Rep. Van Orden, Derrick [R-WI-3], Rep. Vindman, Eugene Simon [D-VA-7] and 2 more
Recent Actions
- 2026-02-05: Referred to the House Committee on Energy and Commerce.
- 2026-02-05: Introduced in House
- 2026-02-05: Introduced in House
Bill Versions
- Community Health Center Drug Pricing Protection Act — issued 2026-02-05 — PDF (3 pages)