Molly Jenkins, Director of Public Affairs at the Pharmaceutical Research and Manufacturers of America (PhRMA), said that hospitals participating in the 340B Drug Pricing Program now receive significantly more revenue from brand medicine spending than they did a decade ago. This increase, she noted, has led to hidden costs for patients and taxpayers. Jenkins made these remarks in a blog post.
“340B hospitals now get 18 times more of each dollar spent on brand medicines than a decade ago, while patients, taxpayers and employers are saddled with a hidden tax,” said Jenkins.
According to the Government Accountability Office, the 340B Drug Pricing Program was established in 1992 to assist eligible providers in purchasing outpatient drugs at a discount and expanding services to underserved patients. The program’s expansion through contract pharmacies has raised concerns about whether it continues to fulfill its original intent. Critics argue that this expansion may be diverging from its purpose.
A study published in 2024 by the Journal of Managed Care & Specialty Pharmacy reported that 340B contract pharmacy arrangements grew from 1,300 in 2010 to over 60,000 by 2022. The study questioned whether the financial benefits of the program are being passed on to patients and recommended improved transparency in how 340B savings are utilized.
According to PhRMA, Georgia’s 340B program includes 57 participating hospitals with over 1,000 contracts with pharmacies nationwide. However, only a small proportion of these contract pharmacies are located in medically underserved areas, raising concerns about the program’s effectiveness in reaching its intended beneficiaries. Additionally, a significant share of participating hospitals in Georgia provide charity care below the national average, further questioning whether the program aligns with its original intent of supporting vulnerable populations.
Jenkins is responsible for leading communication initiatives on healthcare costs at PhRMA. She previously worked with Representative Greg Walden and the House Energy and Commerce Committee in communications roles. Jenkins holds a master’s degree in Health Communication from Johns Hopkins University.
