AHA expresses support for Closing Loopholes for Orphan Drugs Act

The AHA today expressed support for the Closing Loopholes for Orphan Drugs Act (H.R. 6174), bipartisan legislation that would limit the “orphan drug” exclusion for 340B Drug Pricing Program rural and cancer hospitals. Specifically, the legislation would allow 340B critical access hospitals, sole community providers, rural referral centers and free-standing cancer hospitals to purchase orphan drugs at discounted rates through the 340B program as long as the orphan drug is used to treat illnesses or conditions other than the rare illnesses or conditions for which the orphan drug designation was originally given. “In an era of rapidly rising prescription drug costs, this bill is an important step to ensure that 340B hospitals subject to the orphan drug exclusion can obtain lifesaving drugs at a much needed discount so they can stretch limited resources to better serve their communities,” AHA Executive Vice President Tom Nickels wrote in a letter of support to Peter Welch (D-VT) and Morgan Griffith (R-VA), the bill’s sponsors.