The Original Goals of the 340B Program 

The 340B Drug Pricing Program is a federal safety net program created to help vulnerable patients access medications by biopharmaceutical companies providing discounts to hospitals, community health centers and other providers.


Today’s Reality

Unfortunately, today’s 340B program has morphed into a massive profit generator for pharmacy chains, hospitals and middlemen like pharmacy benefit managers (PBMs), failing to deliver discounted medicines to the patients who need them most.

How 340B Entities Are
Failing Patients

How 340B Entities Are Failing Patients


Poor Outcomes

Research shows participation in the 340B program does not improve health outcomes for low-income patients.

Notably, 69% of 340B disproportionate share hospitals (DSH) – hospitals who see a disproportionate number of vulnerable patients – provide below-average levels of charity care (lower-cost or free care).


High Prices

Medicine price mark-ups are 6.6x higher at 340B hospitals than at independent clinics.

Profit margins for 340B contract pharmacies – the pharmacies that 340B hospitals contract with to dispense 340B medicines – are 3.3x higher than those for independent clinics dispensing non-340B drugs.


Wrong Locations

Just 35% of 340B hospitals and 23% of 340B contract pharmacies are located in the medically underserved areas they are meant to serve.

By The Numbers: The Unrestrained Explosion of the 340B Program

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Discounted purchases made under 340B totaled at least $54.6 billion in 2022—a 22% increase from 2021.

340B Program At A Glance
(BRG, January 2024)

The 340B Program has become one of the largest federal prescription drug program, second only to Medicare Part D.


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The number of 340B contract pharmacies has exploded by 2,400% since 2010, padding profits for Walgreens, Walmart, CVS, UnitedHealth, and Cigna – five companies that control 75% of contract pharmacy relationships.

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In 2023 alone, contract pharmacies captured an estimated $10 billion in 340B funds meant for patients.

340B Program At A Glance
(BRG, January 2022)

DSH hospitals earned an estimated $44.1 billion in 340B profit in 2022, three times more than they spent on charity care during the same period.

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DSH hospitals made 87% of purchases under 340B in 2022, but they are not required to report their 340B profits or how this revenue is used to lower costs for patients.

How Do We Get 340B to Work for Patients?

Vulnerable patients are counting on the 340B program to deliver affordable medications. We need commonsense action to ensure this program serves patients, not profits. To that end, policymakers must:

1. Ensure 340B directly supports access for vulnerable, uninsured and indigent patients

2. Ensure program participants are operating as a true safety net

3. Address program abuses through improved transparency, accountability and oversight

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