340B Drug Discount Program | Council For Citizens Against Government Waste

340B Drug Discount Program

Taxpayers Beware

STOP THE SPECIAL INTEREST FEEDING FRENZY!

Patients are being fed to the sharks. Special interests, like contract pharmacies and hospitals, are taking advantage of unclear definitions of what constitutes a 340B patient to line their own pockets with discounts meant for those in need. The 340B program must strongly define patient eligibility and enforce strict accountability measures to enhance transparency.

The federal 340B drug discount program was created in 1992 to help federally funded clinics and public hospitals that serve a large uninsured population cover the cost of drugs and provide discounts to patients. However, the lack of clear intent and definition of a patient, along with poor oversight, have led to the program being exploited by hospitals and contract pharmacies to generate millions of dollars in profit. Patients are not getting their benefits, and taxpayers and consumers are paying the price for the abuses of the program. Reforms to 340B are essential and should be done by Congress rather than the states.

Let's get back to the way Congress intended the 340B program to be—for patients, not profits.

Prioritize patient needs.

  • Establishing a centralized clearinghouse to manage and process 340B claims will facilitate better communication between pharmacies, healthcare providers, insurers, and patients. To monitor compliance and prevent issues, such as duplicate discounts and diversion, covered entities must provide continuous, real-time data.

Enhance accountability and transparency.

  • To prevent program abuse, covered entities and contract pharmacies should verify patient eligibility every time medications are dispensed.
  • Prescriptions must be linked to healthcare services provided within the past 12 months to ensure that the benefits reach the intended patient.

Define who qualifies for the program.

  • The program must ensure that only those requiring financial assistance or with low-income benefit from it.
  • Patients must be under the care of a physician affiliated with a qualifying 340B entity and receive a 340B prescription for a diagnosis related to their care.

It's time to fix this mess and fix 340B.

Fix the mess


The Latest from 340B

State Action

CCAGW Urges Oklahoma Senators to Sustain Governor Stitt's Veto of HB 2048

HB 2048 will change how the federal 340B Drug Discount Program operates in Oklahoma

Alec Mena May 21, 2025
State Action

CCAGW Urges Oklahoma Representatives to Sustain Governor Stitt's Veto of HB 2048

HB 2048 would change how the federal 340B Drug Discount Program operates in the Sooner State

Alec Mena May 21, 2025
Letters to Officials

CCAGW Urges House of Representatives to Oppose Mandatory Demonstration Projects and Support Elimination of CMMI

The Center for Medicare and Medicaid Innovation is a wasteful and ineffective program that should be eliminated. 

Eric Maus May 8, 2025
State Action

CCAGW Urges Oklahoma Senators to Oppose HB 2048

HB 2048 would change how the federal 340B Drug Discount Program operates in the Sooner State. 

Alec Mena May 7, 2025
State Action

CCAGW Urges Texas Representatives to Oppose HB 3265

HB 3265 would change how the federal 340B Drug Discount Program operates in the Lone Star State. 

Alec Mena May 7, 2025
State Action

CCAGW Urges Colorado Legislators to Oppose SB 71

SB 71 would change how the federal 340B Drug Discount Program operates in Colorado.

Alec Mena May 6, 2025
State Action

CCAGW Urges Oregon Senators to Oppose HB 2385 A

HB 2385A would change how the federal 340B Drug Discount Program operates in Oregon. 

Alec Mena May 2, 2025
State Action

CCAGW Urges Tennessee Governor Bill Lee to Veto SB 1414

SB 1414 would change how the federal 340B Drug Discount Program operates in Tennessee.

Alec Mena April 30, 2025
State Action

CCAGW Urges Oklahoma Senators to Oppose HB 2048

HB 2048 would change how the federal 340B Drug Discount Program operates in Oklahoma. 

Alec Mena April 22, 2025
The WasteWatcher

Implementation of Drug Pricing EO Should Protect Innovation and IP

President Trump's EO addresses the dual objectives of lowering drug prices while promoting innovation and protecting IP

Thomas Schatz April 16, 2025
State Action

CCAGW Urges Oregon Legislators to Oppose House Bill 2385

HB 2385 would change how the federal 340B Drug Discount Program operates in Oregon. 

Alec Mena April 15, 2025
State Action

CCAGW Urges Oregon Legislators to Oppose Senate Bill 533

SB 533 would change how the federal 340B Drug Discount Program operates in Oregon. 

Alec Mena April 15, 2025

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