340B PATIENTS Act of 2024

S 5021, the 340B PATIENTS Act of 2024, clarifies and strengthens the 340B drug discount program by ensuring covered entities (like community health centers, hospitals, and clinics) can legally contract with pharmacies to dispense 340B drugs to their patients. The bill explicitly prohibits drug manufacturers from restricting how covered entities use discounted drugs - such as by limiting delivery locations, requiring extra data, or refusing to ship to contracted pharmacies - regardless of where the drugs are dispensed. It adds specific provisions requiring manufacturers to offer discounts without conditions and creates new enforcement tools, including $2 million daily penalties for violations. This directly affects manufacturers who sell to covered entities and ensures these entities can use contract pharmacies to access essential medications, particularly for complex treatments like cancer drugs.