BISMARCK — The North Dakota Senate on Tuesday, March 25, passed a bill to expand access to prescription medications discounted under the federal 340b program.
House Bill 1473 passed the House of Representatives with a 71-17 vote and passed the Senate in a 41-4 vote. It now goes to the governor to be signed into law or vetoed.
The federal 340b Drug Pricing program allows hospitals or health centers to receive prescription medications at discounted prices if they serve low-income communities, rural or isolated communities, or focus on children’s or cancer patient care.
Whatever profit is made from the markup hospitals charge on 340b discounted drugs goes back to the hospital to offset the cost of services they must provide but lose money on.
Currently, hospitals or federally qualified health centers that partake in the 340b program can only provide the drugs they receive at discounted rates through one contracted pharmacy.
The bill would allow North Dakota health centers participating in the 340b program to contract with more than one pharmacy to provide the medication, allowing for greater access to 340b discounted medication.
“House Bill 1473 helps to stop drug manufacturers from implementing their own rules outside of an already established federal program,” Sen. Judy Lee, R-West Fargo, said on the Senate floor. “Drug manufacturers continue to provide fewer discounted drugs to North Dakota, and that’s not the way the federal program is supposed to work.”
Opponents say the 340b program incentivizes the use of more and higher-cost medications, does not pass discounted prices on to patients, and there is not enough oversight to ensure health centers are using the profits generated by the 340b program on patient care.
The bill’s sponsor Rep. Jon Nelson, R-Rugby, was the subject of negative TV advertisement and robocall campaigns sponsored by nonprofit Building America’s Future.
Reuters reported in October 2024 that a handful of people familiar with how the group is funded confirmed it receives financial contributions from billionaire and senior adviser to President Donald Trump, Elon Musk.
They claim the program subsidizes gender transition procedures for minors. An example of the advertisements targeting Nelson can be found on the group’s YouTube channel with the title “Trump Underminers.”
Nelson has said there are no transgender surgeries happening in North Dakota, let alone any subsidized by the 340b program.