340B Drug Pricing Program

Ensuring 340B Works for Patients:
Addressing Misuse & Advocating for Reform

The 340B Drug Pricing Program was created in 1992 to help hospitals and clinics that serve low-income, uninsured, and underinsured patients. Through this program, these healthcare providers can purchase outpatient prescription drugs at discounted prices. The goal is that these savings are invested to improve care for underserved communities by funding patient support programs, expanding services, and reducing medication costs for patients

However, there are growing concerns that some healthcare providers and for-profit entities may misuse the 340B program. Instead of using the discounts to directly help patients, these “bad actors” might focus on generating revenue for their organizations. Examples include:

Limited Patient Benefits: Patients may not always see reduced costs for their medications, even though the provider purchased the drugs at a discount.
Lack of Transparency: It’s not always clear how the savings from the program are being used or if they are benefiting patients in need.
Focus on Profitable Patients: Some organizations prioritize serving insured patients who generate higher profits, rather than focusing on the underserved populations the program was meant to support.

These issues raise important advocacy concerns. We believe that 340B savings should go directly to improving care for vulnerable patients by (1) reducing medication costs, (2) funding community health initiatives and (3) expanding access to services like cancer care, mental health support, and chronic disease
management.

We are urging for stronger oversight, better transparency, and accountability measures to ensure that the program fulfills its original mission of helping patients in need.

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