On the Hill: Senate Advances Short-Term CR

Lawmakers have departed Washington for the remainder of the month after taking a major step toward avoiding a government shutdown ahead of the Sept. 30 funding deadline. The Senate adjourned early Aug. 8 after overwhelmingly approving a bipartisan continuing resolution (CR) in a 90-6 vote, extending government funding through Dec. 11. The measure is expected to clear the House when lawmakers return on Aug. 31, although Republican leaders could still face resistance from some conservative members. Conservatives and allies of Office of Management and Budget (OMB) Director Russell Vought may object to provisions that would significantly delay implementation of a proposed OMB rule aimed at overhauling the federal grantmaking process.

The CR sets the stage for an intense funding push during the postelection session. Senate appropriators remain divided over defense and non-defense spending levels as Republicans seek to accommodate President Trump's $1.5 trillion defense budget request.

Senate 340B Working Group Legislation

U.S. Sens. Jerry Moran (R-Kan.), Tammy Baldwin (D-Wis.), Shelley Moore Capito (R-W.Va.), Tim Kaine (D-Va.), John Boozman (R-Ark.), and John Hickenlooper (D-Colo.), members of the Senate 340B Bipartisan Working Group, reintroduced the SUSTAIN 340B Act last week. Key provisions of the bill would:

• Reiterate the 340B program's intent, including an emphasis on point-of-purchase discounts rather than rebates

• Codify contract pharmacy use without numeric or geographic limits; however, there are limitations around registration, required audits for covered entities with many contract pharmacies, and standardization of contractual requirements between covered entities and contract pharmacies

• Define an eligible 340B patient and add requirements/oversight for 340B patients being dispensed 340B drugs through referrals to non-covered entities

• Sunset the 340B rebate model program (or anything substantially similar) within one year, transitioning instead to a clearinghouse model operated by an independent third-party

• Require that child sites be wholly owned and integrated with the parent covered entity

• Enact new annual reporting requirements

• Establish a user fee to pay for program administration, including the clearinghouse

• Define "child site" and "contract pharmacy"

Read the full bill here.

Both the House and Senate are in recess.

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