The Oregon House Committee on Rules convened on April 21, 2025, to discuss House Bill 3409, which aims to amend regulations surrounding the 340B drug pricing program. The bill, featuring a dash 2 amendment, seeks to alleviate administrative burdens on pharmacies, particularly in rural areas, by prohibiting pharmacy benefit managers (PBMs) from requiring specific claim modifiers when submitting reimbursement claims for 340B drugs.

Representative Cyrus Javidy, who supports the bill, emphasized its importance for maintaining access to medications in underserved communities. He explained that the 340B program was designed to help safety net providers stretch their resources, but it has become increasingly complex and burdensome for pharmacies. The proposed legislation would allow pharmacies to use a third-party clearinghouse to manage claims, thereby reducing the risk of errors that could lead to audits or lost rebates.

The bill also aims to ensure fair treatment for pharmacies participating in the 340B program, preventing PBMs from paying them less or excluding them from networks based on their participation in the program. Javidy noted that the legislation is a response to the challenges faced by pharmacies, particularly in rural areas where options are limited.

However, the bill faced opposition from various stakeholders, including representatives from the pharmaceutical industry. Critics argued that the proposed clearinghouse model lacks proven effectiveness and could undermine transparency and accountability within the 340B program. They expressed concerns that the absence of claims modifiers, which are currently considered best practices, could lead to increased risks of fraud and abuse.

The committee engaged in a thorough discussion about the implications of the bill, including the potential impact on transparency and the need for a defined clearinghouse model. While supporters highlighted the bill's intent to streamline processes and improve access to medications, opponents cautioned against moving forward without a clear framework for accountability.

As the committee concluded the public hearing, the future of House Bill 3409 remains uncertain, with further deliberations expected to address the concerns raised during the session. The bill is set to take effect on the 91st day following its passage, should it move forward in the legislative process.