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
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
High Prices
By The Numbers: The Unrestrained Explosion of the 340B Program
Billion
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.
EXCLUSIVE: The 340B Program Climbed to $54 Billion in 2022 — Up 22% vs. 2021
(Drug Channels, September 2023)
2nd
Largest
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.
Billion
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.
DSH Hospitals’ 340B Profit Often Exceeds Charity Care Spending
(AIR340B, March 2024)
Billion
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.
DSH Hospitals’ 340B Profit Often Exceeds Charity Care Spending
(AIR340B, March 2024)
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