Thomas Oliverson, M.D., Representative and Majority Leader of the Texas House of Representatives, said he is committed to ensuring full transparency in the 340B Drug Pricing Program. He aims to uncover misuse and unintended consequences within the program, an issue attracting attention in New Jersey.
“I am fighting for full transparency on 340b,” said Tom Oliverson. “In the annals of “unintended consequences”, there should be 2 full chapters dedicated to this dumpster fire of a program.”
Congress has focused its reform efforts on transparency within the 340B program. According to committee materials, H.R. 3290, known as the “340B Transparency Act,” would mandate that covered hospitals and outpatient sites report their use of savings, operating margins on discounted drugs, and other data. The goal is to enhance oversight and minimize duplicate discounts by ensuring accountability to patients and payers through standardized reporting.
Independent analysis indicates that the growth of the program significantly outpaces the vulnerable population it was designed to serve. IQVIA reports that from 2013 to 2021, estimated 340B revenue increased by 374%, while the size of the vulnerable population decreased by nearly half. This suggests a growing misalignment between generated funds and targeted patients, raising concerns about potential misuse and insufficient safeguards.
National research on 340B oncology and infusion drugs shows that after eligibility expansions, participating hospitals across states, including New Jersey, increased spending on outpatient-administered drugs for commercially insured patients without evidence of commensurate patient savings. The study concludes that 340B incentives may encourage higher markups and site-of-care shifts, raising concerns about whether New Jersey patients are seeing any direct relief on their medical bills.
Oliverson is a physician-anesthesiologist and Republican member of the Texas House representing District 130 since 2017. His role as Majority Leader since April 3, 2024, combined with his legislative and medical expertise, positions him as a key figure in discussions on health system oversight and transparency issues like those surrounding the 340B program.
