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 Legislators to Oppose House Bill 2048

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

Alec Mena February 12, 2025
The WasteWatcher

340B Must Be Reformed in the 119th Congress

340B reform should not only should be acted on by Congress, but also reviewed by DOGE.

Christina Smith February 12, 2025
State Action

CCAGW Urges Utah Legislators to Oppose Senate Bill 69

SB 69 would change how the federal 340B Drug Pricing Program operates in the Beehive State. 

Alec Mena February 11, 2025
State Action

CCAGW Urges North Dakota Legislators to Oppose House Bill 1473

HB 1473 would change how the federal 340B Drug Pricing Program operates in North Dakota. 

Alec Mena February 6, 2025
State Action

CCAGW Urges Nebraska Senators to Oppose Legislative Bill 168

LB 168 would change how the federal 340B Drug Pricing Program operates in the Cornhusker State. 

Alec Mena February 4, 2025
State Action

CCAGW Urges South Dakota Senators to Oppose SB 154

Senate Bill 154 would change how the federal 340B Drug Pricing Program operates in South Dakota. 

Alec Mena January 31, 2025
State Action

CCAGW Urges Kentucky Senators to Oppose SB 14

Senate Bill 14 will change how the federal 340B Drug Pricing Program operates in the Bluegrass State.

Alec Mena January 28, 2025
State Action

CCAGW Urges Indiana Legislators to Oppose Senate Bill 140

SB 140 would impose onerous regulations on pharmacy benefit managers.

Alec Mena January 21, 2025
The WasteWatcher

Hospitals Abuse 340B Program at the Expense of Vulnerable Patients

The 340B Drug Pricing Program allows hospitals to prioritize profits over patients. 

Christina Smith January 17, 2025
State Action

CCAGW Urges Michigan Legislators to Oppose Senate Bill 1179

SB 1179 will change how the federal 340B Drug Pricing Program operates in Michigan.

Alec Mena December 17, 2024
State Action

CCAGW Urges Michigan Legislators to Oppose Senate Bill 1179

Senate Bill 1179 will change how the federal 340B Drug Pricing Program operates in Michigan. 

Alec Mena December 12, 2024
State Action

CCAGW Urges Michigan Legislators to Oppose Senate Bill 1179

Senate Bill 1179 will change how the federal 340B Drug Pricing Program operates in Michigan.

Alec Mena December 6, 2024

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