340B Drug Discount Program | Page 3 | 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 Tennessee Representatives to Oppose HB1242 - SB 1414

HB1242 - SB 1414 would change how the federal 340B Drug Discount Program operates in Tennessee.

Alec Mena April 7, 2025
State Action

CCAGW Urges Tennessee Senators to Oppose SB 1414 - HB 1242

SB 1414 and HB 1242 would change how the federal 340B Drug Discount Program operates in Tennessee.

Alec Mena April 7, 2025
State Action

CCAGW Urges Nebraska Governor Jim Pillen to Veto LB 168

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

Alec Mena April 4, 2025
State Action

CCAGW Urges Tennessee Senators to Oppose HB 1242-SB 1414

HB1242/SB 1414 will change how the federal 340B Drug Discount Program operates in Tennessee. 

Alec Mena April 3, 2025
State Action

CCAGW Urges North Dakota Governor Kelly Armstrong to Veto HB 1473

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

Alec Mena April 3, 2025
State Action

CCAGW Urges Colorado Representatives to Oppose SB 71

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

Alec Mena March 28, 2025
State Action

CCAGW Urges Utah Governor Spencer Cox to Veto SB 69

SB 69 would change how the federal 340B Drug Discount Program operates in Utah. 

Alec Mena March 21, 2025
State Action

CCAGW Urges Kansas Senators to Oppose Senate Bill 284

SB 284 would change how the federal 340B Drug Pricing Program operates in Kansas

Alec Mena March 14, 2025
State Action

CCAGW Urges Tennessee Senators to Oppose Senate Bill 1414

SB 1414 will change how the federal 340B Drug Discount Program operates in the Volunteer State. 

Alec Mena March 13, 2025
State Action

CCAGW Urges North Dakota Senators to Oppose House Bill 1473

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

Alec Mena March 11, 2025
State Action

CCAGW Urges Colorado Legislators to Oppose Senate Bill 71

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

Alec Mena March 7, 2025
State Action

CCAGW Urges South Dakota Representatives to Oppose SB 154

SB 154 would change how the federal 340B Drug Discount Program operates in South Dakota

Alec Mena March 4, 2025

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