National Consumers League announced the results of a new Morning Consult national poll showing strong public support for comprehensive reforms to the 340B Drug Pricing Program. The announcement was made in a press release.
Established in 1992 and administered by the Health Resources and Services Administration, the 340B Drug Pricing Program was created to help healthcare providers stretch limited resources to serve vulnerable populations. It allows eligible entities to purchase outpatient drugs at reduced prices. These savings are intended to support access to care for low-income and uninsured patients.
According to the Government Accountability Office hospitals participating in the 340B program can reinvest savings into services such as medication assistance, expanded care access, and community outreach. However, there is no federal requirement that hospitals report how they use 340B revenue. This lack of transparency has raised concerns over whether savings are consistently used to benefit low-income patients.
A 2023 analysis by Dan Crippen, former Director of the Congressional Budget Office, estimated that the 340B program reduces state and federal tax revenues by as much as $17 billion annually. The analysis noted that $3.5 billion is lost at the state and local level, with the remainder affecting federal revenue. Crippen also estimated the total value of 340B discounts reached $70 billion last year.
According to PhRMA, 68 hospitals in Pennsylvania participate in the 340B drug discount program, maintaining over 2,250 contracts with pharmacies nationwide. Only 29% of these contract pharmacies are located in medically underserved areas, raising questions about program reach. Additionally, 88% of participating hospitals in Pennsylvania provide charity care below the national average.
The National Consumers League was founded in 1899 and is the oldest consumer advocacy organization in the United States. Its mission is to protect and promote social and economic justice for consumers and workers nationwide. NCL focuses on issues such as healthcare access, marketplace fairness, and labor rights.
