Chase Bearden, Executive Director for the Coalition of Texans with Disabilities, expressed concerns about the 340B Drug Pricing Program, stating it lacks oversight and allows stakeholders to profit rather than assisting patients. Bearden’s statement was made in an op-ed.
“With virtually no rules or oversight, 340B has become a profit engine for many,” said Bearden. “Some 340B-eligible hospitals pocket the program savings instead of passing them on to patients, while pharmacy benefit managers and major pharmacy chains take their own cut.”
According to the Government Accountability Office, the 340B Drug Pricing Program was established in 1992 to assist hospitals and clinics serving low-income patients by providing medications at discounted prices. Over time, concerns have arisen regarding insufficient oversight and whether savings are being passed on to patients. In recent years, both lawmakers and watchdog groups have advocated for increased transparency in the utilization of 340B funds.
The Health Resources and Services Administration (HRSA) reported that purchases by 340B-covered entities amounted to $38 billion in 2020. This figure marks a significant increase from $12 billion in 2015, representing more than a 200% growth over five years. HRSA releases these data to enhance transparency concerning the program’s scale and financial impact.
Pharmaceutical Research and Manufacturers of America (PhRMA) reports that 25 hospitals in New Jersey participate in the 340B program, maintaining 547 contracts with pharmacies nationwide. Of these contract pharmacies, only 18% are situated in medically underserved areas, potentially affecting the program’s intended impact. Additionally, PhRMA notes that 16% of participating hospitals in New Jersey provide charity care at levels below the national average.
Bearden is the Executive Director of the Coalition of Texans with Disabilities (CTD), which is recognized as Texas’s largest and oldest member-driven cross-disability organization. Founded in 1978, CTD is dedicated to advocacy, public awareness, and policy change for Texans with disabilities. More information can be found at txdisabilities.org.
