340B Drug Discount Program | Page 6 | 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 Minnesota Legislators to Remove 340B Mandate from S.F. 4942

SF 4942's manufacturer mandate would change how the federal 340B drug pricing program operates in Minnesota.

Alec Mena May 8, 2024
State Action

CCAGW Urges Kansas Senate Ways and Means Committee to Accept the 340B Amendment

The Kansas House Appropriations Committee’s amendment to Substitute for SB514 eliminates proposed changes to the federal 340B drug pricing program. 

Alec Mena April 26, 2024
State Action

CCAGW Urges Kansas Legislators to Oppose Amendment to SB 514

The move to amend Substitute for SB 514 will change how the federal 340B drug pricing program operates in the Sunflower State. 

Alec Mena April 5, 2024
State Action

CCAGW Urges Governor Reeves to Veto House Bill 728

HB 728 would change how the federal 340B program operates in Mississippi.  

Alec Mena April 4, 2024
Reports

The 340B Drug Pricing Program Needs a New Prescription

Federal healthcare programs are often well-intended but end up costing more than expected and become subject to waste, fraud, abuse, and mismanagement.

Christina Smith March 29, 2024
State Action

CCAGW Urges Oklahoma Representatives to Oppose HB 3379

HB 3379 would make changes to the federal 340B program.

Alec Mena March 6, 2024
State Action

CCAGW Urges Oklahoma Senators to Oppose SB 1628

SB 1628 would change how the federal 340B program operates in Oklahoma.

Alec Mena March 6, 2024
State Action

CCAGW Urges Governor Youngkin to Veto Senate Bill 119

SB 119 would change how the federal 340B program operates in the Old Dominion.

Alec Mena March 5, 2024
State Action

CCAGW Urges Nebraska Legislators to Oppose LB 984

LB 984 would change how the federal 340B program operates in the Cornhusker State.

Alec Mena February 27, 2024
State Action

CCAGW Urges Virginia Legislators to Oppose Senate Bill 119

SB 119 would make changes to the federal 340B drug discount program.

Alec Mena February 26, 2024
State Action

CCAGW Urges Mississippi Legislators to Oppose House Bill 728

HB 728 would make changes to the federal 340B drug discount program operates in the Magnolia State.

Alec Mena February 20, 2024
State Action

CCAGW Urges Oklahoma Senators to Oppose SB 1628

SB 1628 would change how the federal 340B Drug Discount Program operates in Oklahoma.

Alec Mena February 16, 2024

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