340B State Legislation: Oregon
Overview
The Oregon Legislature is considering legislation (HB 2385 and SB 533) that would perpetuate the negative impacts of the 340B program on employers. The bill would increase costs for working families and fails to address the 340B program’s lack of transparency – something that both the program and Oregonians desperately need.
The 340B program allows participating hospitals in Oregon and across the U.S. to purchase medications at a significant discount and sell them to plan sponsors at the prevailing, if not much higher, price. This results in a “buy low, sell high” scheme in which hospital profit significantly at the expense of working families and their employer plan sponsors. Hospitals that participate in the program should pass the 340B savings on to vulnerable patients in local communities, which was the original intent of the 340B program. That is not happening.
The National Alliance of Healthcare Purchaser Coalitions urge policymakers to oppose this legislation. HB 2385 and SB 533 stand to increase employer costs by $18 per beneficiary, costing Oregon employers an additional $35 million a year. This legislation stands to exacerbate the impact of 340B on purchasers and employees and further raise health care costs for Oregan families and perpetuate health care consolidation.
340B Employer Resources
Explore these additional resources for more information about the impact of 340B and the current lack of transparency around the program in Oregon:
340B Bill Would Raise Healthcare Costs for Oregon Businesses
Learn more about the impact of proposed 340B legislation on commercial and public-sector employers and working families in Oregon.
Business Coalition Expresses Concern About Oregon 340B Legislation
President & CEO Shawn Gremminger submitted written testimony to raise the National Alliance of Healthcare Purchaser Coalition’s concerns about the impact of the proposed legislation on healthcare costs for working families.
What 340B Costs Oregon Employers
The 340B Drug Pricing Program was designed to support safety-net providers, but in practice, it’s far from free—especially for employers. In Oregon, the program is currently costing employers and their workers $131 million annually due to lost drug rebates and inflated costs for employer-sponsored plans. If pending legislation mandating contract pharmacies passes, this figure could rise to $166 million.
Explore IQVIA data one-pager to see the full financial breakdown for Oregon—including the impact on state and local government health plans—and learn how legislative changes could further increase the cost burden for Oregon businesses and taxpayers.
