Molly Jenkins, Director of Public Affairs for the Pharmaceutical Research and Manufacturers of America (PhRMA), said that a new analysis indicates the federal government has neglected oversight of the 340B Drug Pricing Program, allowing 99.7% of providers to avoid scrutiny. This statement was made on the PhRMA website.
“A new analysis from ADVI shows how the federal government routinely neglected to provide oversight of the 340B program,” said Jenkins. “While 99.7% of 340B providers escape scrutiny due to a lack of oversight, the majority of audits that are conducted reveal adverse findings, raising serious concerns.”
The 340B Drug Pricing Program, established in 1992 and managed by the Health Resources and Services Administration (HRSA), allows eligible healthcare providers to purchase outpatient drugs at reduced prices. The program aims to extend resources and serve vulnerable populations, particularly low-income and uninsured patients. However, critics have expressed concerns regarding its transparency and oversight.
According to a 2024 study, the number of 340B contract pharmacy arrangements increased from 1,300 in 2010 to over 60,000 in 2022. Researchers highlighted concerns about the distribution of financial benefits, noting limited evidence that patients directly benefit from these savings. This underscores a need for greater transparency in financial flows.
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, it was noted that 16% of participating hospitals in New Jersey provide charity care at levels below the national average.
Jenkins serves as Director of Public Affairs at PhRMA, where she focuses on communication strategies related to healthcare cost and value. Her previous experience includes roles in issue advocacy and communications with Representative Greg Walden and the House Energy and Commerce Committee. Jenkins holds an M.A. in Health Communication from Johns Hopkins University.
