NACHC and PhRMA Split on 340B Reform Discussion Draft — Health Centers Reject Manufacturer Audit Provisions as 'Program-Gutting' Threat

Congressional staff circulated a 340B reform discussion draft that would grant manufacturers new audit rights over covered entities in exchange for limiting contract pharmacy restrictions. NACHC and 340B Health immediately rejected the draft, arguing that expanded manufacturer audit rights would allow pharmaceutical companies to dispute patient eligibility across virtually any dispensing event — effectively gutting the program. PhRMA endorsed the framework. The conflict signals that 340B reform language could be attached to the reconciliation bill as a deficit reduction mechanism, requiring FQHCs to fight simultaneously on Medicaid and drug savings fronts.