The gist

Protects hospitals from losing 340B drug discount eligibility when Medicaid cuts reduce their low-income patient counts. Shields safety-net and rural hospitals through 2030.

Who wins, who loses

Wins: rural hospitals, safety-net hospitals, low-income patients relying on discounted medications.

Loses: drug manufacturers required to keep offering 340B discounts to hospitals that would otherwise lose eligibility.

What it does

Deems qualifying hospitals as 340B 'covered entities' even if they miss the disproportionate share adjustment threshold.

Applies to hospitals participating in 340B on July 3, 2025 under specific categories (L, M, or O).

Exception runs through cost reporting periods ending by September 30, 2030.

Orders the Government Accountability Office (GAO) to study rural hospital service losses within one year.

Why should I care?

Supporters say Medicaid cuts unfairly kick struggling hospitals off drug discount programs, threatening obstetrics and cancer care in rural towns. Critics argue 340B has expanded beyond its original purpose and hospitals pocket savings rather than passing them to patients. An alternative reforms the whole 340B eligibility formula instead. Where do you land? Vote below and use "Tell Your Rep" to make sure your voice reaches Congress.