340B Drug Discount Program
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.
The Latest from 340B
The WasteWatcherPresident Trump Can Cut Wasteful Spending to Reduce Drug Prices and Healthcare Costs
Rather than adopting MFN, the administration and Congress should reject price controls, reform 340B, and eliminate CMMI
State ActionCCAGW Urges Ohio Senators to Oppose SB 198
SB 198 would change how the federal 340B Drug Discount Program operates in the Buckeye State.
State ActionCCAGW Urges Michigan Representatives to Oppose HB 4878
HB 4878 would change how the federal 340B Drug Discount Program operates in Michigan.
Agency CommentsCAGW Submits Comments to HHS and HRSA Regarding 340B Rebate Model Pilot Program
HRSA’s 340B Rebate Model Pilot Program is a positive step in the effort to reform a program that is failing to deliver benefits
Letters to OfficialsCCAGW Joins Coalition Opposing the 340B Patients Act
340B Patients Act would worsen 340B abuses by enriching large hospitals and middlemen at the expense of the patients in need.
Letters to OfficialsCCAGW Urges Senate HELP Committee Republicans to Oppose MFN Policies and Support 340B Reform
MFN policies harm innovation and raise costs; 340B reforms stop hospitals and pharmacies from profiting at patients' expense.
Letters to OfficialsCCAGW Urges House of Representatives to Oppose 340B Patients Act
Vague 340B rules enable hospitals to exploit the program, profiting off patients and insurers while driving up drug costs.
Letters to OfficialsCCAGW Urges Senate to Oppose 340B Patients Act
Vague 340B rules enable hospitals to exploit the program, profiting off patients and insurers while driving up drug costs.
Letters to OfficialsCCAGW Joins Coalition Opposing Waste, Fraud, and Abuse in Healthcare Industry
Large non-profit hospitals exploit tax breaks and federal programs, undermining charity care and distorting the healthcare market.
State ActionCCAGW Urges California Senate to Oppose AB 1460
AB 1460 would change how the federal 340B Drug Pricing Program operates in the Golden State
State ActionCCAGW Urges Ohio Representatives to Oppose HB 276
HB 276 would change how the federal 340B Drug Discount Program operates in the Buckeye State
Letters to OfficialsThe 340B Drug Pricing Program is Overdue for Reform
The 340B Drug Pricing Program has been used to inflate the profits of hospitals and pharmacies rather than providing savings.
