340B Drug Discount Program | Page 8 | 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 Mississippi House of Representatives to Oppose HB 733

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

Ryan Lanier January 26, 2022
The WasteWatcher

New Study Confirms 340B Program is Exploited

A new study, “340B and Health Equity: A Missed Opportunity in Medically Underserved Areas,” shows the program is misused.

Elizabeth Wright December 2, 2021
The WasteWatcher

No Government Price Controls to Pay for Biden’s Gargantuan Spending Bill

Sen. Ron Wyden (D-Ore.) wants to use price controls in Medicare Part D to pay for President Biden's extravagant spending.

Elizabeth Wright July 21, 2021
The WasteWatcher

Biden Budget Offers Potential Oversight Tool on 340B Program

The Biden administration's budget includes new enforcement tools for oversight of the 340B program but the details will matter.

Elizabeth Wright June 11, 2021
State Action

CCAGW Urges Arkansas Senate Insurance and Commerce Committee to Oppose HB 1881

CCAGW urges the Arkansas Senate Insurance and Commerce Committee to oppose a bill that would establish the 340B Drug Pricing Discrimination Act. 

Frances Floresca April 22, 2021
State Action

CCAGW Urges Arkansas House of Representatives to Oppose HB 1881

CCAGW urges the Arkansas House to oppose a bill that would establish the 340B Drug Pricing Discrimination Act. 

Frances Floresca April 19, 2021
Letters to Officials

CCAGW Leads Coalition in Letter to Senate and House Offering Reforms for 340B Pricing Program

Coalition calls for reforms to 340B drug pricing program.

Frances Floresca October 28, 2020
The WasteWatcher

Problems Continue with 340B Program

Berkeley Research Group report shows once again how 340B has been corrupted and is being abused.

Elizabeth Wright October 13, 2020
The WasteWatcher

Most Favored Nation Policy: Unfavorable to U.S. Pharmaceutical Research

President Trump signs controversial Executive Order (EO) implementing “most favored nation” policy to lower drug costs.

Elizabeth Wright September 18, 2020
Letters to Officials

CCAGW Calls for 340B Drug Discount Program Reforms

Congress should focus on reforming the 340B drug discount program. 

Frances Floresca September 9, 2020
The WasteWatcher

Wasteful Spending on 340B Keeps Growing and Growing

Amid the COVID-19 pandemic response, the 340B drug safety-net program problems seem to have gotten lost.

Elizabeth Wright June 26, 2020
The WasteWatcher

Hospitals Serving Vulnerable Communities Chase Profits at the Expense of Patients

Patients receiving hospital care don't know if they will get stuck with enormous and unexpected bills when they are released.

Elizabeth Wright February 27, 2020

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