Press Releases

On October 29, Reps. Jack Bergman and Dr. Raul Ruiz, M.D., introduced the Safety Net Provider Drug Pricing Protection Act (H.R. 10919), bipartisan legislation to preserve critical prescription drug discounts for rural hospitals, community health centers, and other safety-net providers participating in the 340B Drug Pricing Program.

The 340B Program allows eligible hospitals and health centers serving low-income, uninsured, and rural patients to purchase outpatient prescription drugs at discounted prices, enabling them to reinvest those savings into patient care and essential services, including behavioral health, obstetric care, dental care, and other programs that might otherwise be reduced or eliminated. In areas like Northern Michigan and the Upper Peninsula, where many hospitals and health centers operate on thin – and sometimes negative – financial margins, savings generated through the 340B Program are critical to keeping facilities open and ensuring patients can access the care they need.

In recent years, federal regulators and drug manufacturers have pursued changes to the 340B Program that would replace up-front prescription drug discounts with a rebate-based model, forcing providers to purchase medications at full price and wait for reimbursement. For smaller safety-net providers with limited financial reserves, this shift would create significant financial and administrative burdens, potentially jeopardizing their ability to maintain essential services.

Rep. Bergman has previously worked to block this rebate model through his Community Health Center Drug Pricing Protection Act (H.R. 7391), which seeks to protect Federally Qualified Health Centers from rebate-based pricing models. While implementation of the federal government’s initial rebate model was delayed, regulators have since announced a revised version of the program, scheduled to take effect on January 1, 2027.

The Safety Net Provider Drug Pricing Protection Act builds on these efforts by extending protections to a broader range of safety net providers, including Critical Access Hospitals, Federally Qualified Health Centers, Sole Community Hospitals, and other eligible entities. Specifically, the legislation would prohibit arrangements under the 340B Program that require these providers to pay more than the 340B ceiling price at the time of purchase and subsequently recover the difference through a rebate, reimbursement, or other payment. By preserving up-front discounts, the bill would protect financially vulnerable providers from additional costs and administrative burdens while ensuring they can continue directing limited resources toward caring for the patients and communities they serve.

“Rural hospitals and community health centers across Northern Michigan and the Upper Peninsula are already operating on razor-thin margins. The last thing they need is another Washington mandate forcing them to pay more upfront for prescription drugs and then wait to get their money back. The 340B Program is a critical lifeline for these facilities and the patients who depend on them. Our bipartisan legislation puts patients and rural healthcare providers first by protecting the savings they rely on to keep their doors open and deliver quality care close to home. I'll continue fighting to make sure Washington isn't making it harder for our rural communities to access the healthcare they deserve,” said Rep. Jack Bergman.

“Safety net providers are the backbone of healthcare in our communities. These lifelines serving our most vulnerable patients depend on the 340B program to keep their doors open and cannot afford the devastating upfront costs of the new pilot Rebate model. The Safety Net Provider Drug Pricing Protection Act is a critical first step to protect that lifeline, but there is more work to do, and I will keep fighting to make sure our safety nets stay strong,” said Rep. Raul Ruiz, M.D. (CA-25).

“The 340B drug pricing program is a lifeline for sustaining critical access hospitals and the rural communities that depend on them. Aspirus Health strongly supports The Safety Net Provider Drug Pricing Protection Act, which would help ensure continued access to more affordable medications by those who need them most,” said Connie Bradley, Senior Vice President, Acute Care Services, Aspirus Health Care.

“OSF St. Francis Hospital is happy to support the Safety Net Provider Drug Pricing Protection Act. This piece of legislation is a necessary step toward ensuring that critical rural healthcare providers, such as OSF St. Francis Hospital in Escanaba, MI, can continue to utilize the 340B program. OSF St. Francis Hospital is supportive of Congressman Bergman's efforts to champion 340B savings and develop policy solutions that address rural healthcare needs in the Upper Peninsula,” said Kelly Jefferson, President, OSF St. Francis Hospital (Escanaba, MI).

“Programs like 340B are vital to rural hospitals like Schoolcraft Memorial Hospital, helping us stretch limited resources and keep care accessible close to home. Just as important, they directly impact patients—making lifesaving treatments, including oncology therapies, more affordable for individuals who might otherwise go without care. We strongly support the Safety Net Provider Drug Pricing Protection Act to protect this critical lifeline for our community,” said Robert W. Mach, FACHE, CEO, Schoolcraft Memorial Hospital.

"Residents in rural communities throughout our country deserve access to high quality healthcare. The Safety Net Provider Drug Pricing Protection Act sponsored by Congressman Bergman protects rural hospitals by removing the unnecessary administrative and financial burden associated with a 340B drug rebate program. This allows hospitals, like Kalkaska Memorial Health Center, to focus their resources on improving the health and quality of life of the rural communities they serve,” said Jeremy Cannon, MSN, RN, FACHE, Kalkaska Memorial Health Center’s Chief Nursing Officer.

“The Safety Net Provider Drug Pricing Protection Act is an important step in preserving the integrity of the 340B Drug Pricing Program. For Critical Access Hospitals like Munising Memorial Hospital, maintaining the up-front discount structure is essential to ensuring continued access to affordable medications for our rural patients. We appreciate Congressman Bergman’s leadership in protecting rural hospitals and the communities we serve,” said Wendy Frush, CEO, Munising Memorial Hospital.

“Helen Newberry Joy Hospital applauds Congressman Bergman’s efforts to protect some of his most vulnerable constituents. He is assuring access to care by helping make drugs more affordable.  Prescription drugs are the fastest growing expense for hospitals, with increases outpacing labor and service costs.  Thank you Congressman Bergman for helping to care for your neighbors in small communities across rural Michigan!” said Helen Johnson, RN, FACHE, CEO, Helen Newberry Joy Hospital & Healthcare Center.

The Safety Net Provider Drug Pricing Protection Act is also supported by Mackinac Straits Hospital, the Michigan Center for Rural Health, the NACHC, AHF, ACH, and the NCUIH.