H.R. 10919House119th Congress (2025-2027)In Committee

Safety Net Provider Drug Pricing Protection Act

To amend title III of the Public Health Service Act to ensure that certain safety net providers are not required to pay more than the 340B ceiling price for covered outpatient drugs at the time of purchase.

Introduced October 29, 2026

AI-Generated Summary

Updated October 31, 2026 at 10:11 AM UTC

The Safety Net Provider Drug Pricing Protection Act amends the Public Health Service Act to require that certain safety‑net health providers pay no more than the 340B ceiling price when they buy covered outpatient drugs. It defines which entities qualify as “safety net covered entities” and bars any arrangement that lets them pay a higher price with a later rebate or reimbursement. The rule would apply to drug purchases made after the law takes effect and would also affect existing 340B agreements.

Key Provisions

  • Adds a new paragraph to 340B(a) prohibiting the Secretary from allowing safety‑net providers to pay more than the applicable 340B ceiling price at the point of purchase.
  • Defines “safety net covered entity” to include specific types of covered entities listed in the existing 340B statute, entities receiving direct state or local government funds, and sole community hospitals.
  • Clarifies that no arrangement may let a safety‑net provider pay above the ceiling price with later reconciliation through rebates or other payments.
  • Makes the amendment effective on the date of enactment and applies it to all drug purchases and existing 340B agreements from that date forward.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Energy and Commerce.

October 29, 2026

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HouseIntro Referral

Introduced in House

October 29, 2026

HouseIntro Referral

Referred to the House Committee on Energy and Commerce.

October 29, 2026

Bill Text

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Introduced in HouseIssued October 29, 2026

I

119th CONGRESS

2d Session

H. R. 10919

IN THE HOUSE OF REPRESENTATIVES

October 29, 2026

Mr. Bergman (for himself, Mr. Ruiz, Mr. Cleaver, Mr. Mann, Ms. Titus, Ms. Norton, Ms. Davids of Kansas, Ms. Balint, Mr. Golden of Maine, Mr. Moulton, Mr. Hernández, Ms. Stansbury, Mr. Austin Scott of Georgia, and Mr. Newhouse) introduced the following bill; which was referred to the Committee on Energy and Commerce

A BILL

To amend title III of the Public Health Service Act to ensure that certain safety net providers are not required to pay more than the 340B ceiling price for covered outpatient drugs at the time of purchase.

1.

Short title

This Act may be cited as the Safety Net Provider Drug Pricing Protection Act.

2.

Ensuring upfront 340B discounted pricing for certain safety net providers

(a)

In general

Section 340B(a) of the Public Health Service Act (42 U.S.C. 256b(a)) is amended by adding at the end the following new paragraph:

(11)

Upfront discounted pricing for certain safety net providers

(A)

In general

The Secretary may not enter into an agreement with a manufacturer of covered outpatient drugs under paragraph (1) under which the amount required to be paid to the manufacturer for covered outpatient drugs by a safety net covered entity exceeds, at the point of purchase of such drug, the applicable ceiling price for such drug (as described in paragraph (1)).

(B)

Safety net covered entity

For purposes of subparagraph (A), the term safety net covered entity means a covered entity that—

(i)

is described in any of subparagraphs (A), (D), (F), (G), (H), (I), (J), or (N) of paragraph (4);

(ii)

is an entity described in subparagraph (K) of such paragraph that receives funds directly from a State or unit of local government; or

(iii)

is a sole community hospital described in subparagraph (O) of such paragraph.

.

(b)

Rule of construction

Nothing in this section, or the amendment made by this section, shall be construed to permit under paragraph (1) of section 340B(a) of the Public Health Service Act (42 U.S.C. 256b(a)) any arrangement under which a safety net covered entity (as defined in paragraph (11)(B) of such section) pays to the manufacturer of a covered outpatient drug an amount in excess of the applicable ceiling price for such drug (as described in such paragraph (1)) at the time of purchase, with later reconciliation by rebate, reimbursement, or other payment.

(c)

Effective dates

(1)

In general

The amendments made by this section shall take effect on the date of the enactment of this section and shall apply to drugs purchased on or after the date of the enactment of this section.

(2)

Application to existing agreements

Beginning on the date of the enactment of this section, the amendments made by this section shall be taken into account in determining whether an agreement with a manufacturer of covered outpatient drugs meets the requirements of section 340B(a) of the Public Health Service Act (42 U.S.C. 256b(a)).