340B Drug Discount Program | Page 7 | 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 West Virginia Legislators to Oppose Senate Bill 325

SB 325 would change how the federal 340B program operates in the Mountain State.

Alec Mena January 31, 2024
Letters to Officials

CCAGW Comments to House Budget Committee Health Care Task Force

Federal intervention in the healthcare marketplace has resulted in fewer choices and higher costs. 

Eric Maus October 13, 2023
The WasteWatcher

The 340B Drug Discount Program Needs an Overhaul

CAGW has long been concerned with the misuse of the 340B Program.  

Christina Smith August 16, 2023
The WasteWatcher

New Study Exposes More Exploitation and Waste in the 340B Drug Discount Program

A new study, “The 340B Drug Discount Program Exceeds $100B in 2022,” shows the program is misused.

Christina Smith June 9, 2023
State Action

CCAGW Urges Mississippi Senate to Oppose SB 2484

SB 2484 would make changes to the federal 340B drug discount program.

Ryan Lanier January 24, 2023
State Action

CCAGW Urges Louisiana Senate Health and Welfare Committee to Oppose HB548

HB548 will make changes to the federal 340B drug discount program. 

Ryan Lanier May 2, 2022
State Action

CCAGW Urges Louisiana House of Representatives to Oppose HB548

HB548 would change how the federal 340B drug discount program operates in the Pelican State. 

Ryan Lanier April 26, 2022
State Action

CCAGW Urges Connecticut Committee on Insurance and Real Estate to Oppose SB 355

SB 355 fails to solve longstanding problems and institutes heavy-handed government mandates which result in market distortion and price controls.

Ryan Lanier March 14, 2022
State Action

CCAGW Urges Utah House Labor and Commerce Committee to Oppose HB 308

HB 308 would institute a manufacturer mandate, which constitutes a government price control, thus further distorting the medical marketplace. 

Ryan Lanier February 23, 2022
State Action

CCAGW Urges Mississippi Senate Leadership to Oppose HB 733

H.B. 733 will make changes to the federal 340B drug program. 

Ryan Lanier February 23, 2022
State Action

CCAGW Urges Maine Joint Committee on Health Coverage, Insurance, and Financial Services to Oppose LD 1938

LD 1939 would fail to solve any of the problems in the federal 340B drug discount program and would further distort the medical marketplace by instituting more government mandates.

Ryan Lanier February 14, 2022
State Action

CCAGW Urges Mississippi House of Representatives to Oppose HB 733

H.B. 733 will make changes to the federal 340B drug program. 

Ryan Lanier February 7, 2022

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