Molly Jenkins, Director of Public Affairs at the Pharmaceutical Research and Manufacturers of America (PhRMA), has expressed concerns regarding the 340B Drug Pricing Program. She said that the program fails to lower medicine costs for patients and urged Congress to address what she described as widespread abuse. Jenkins made these remarks in a blog post.
“What’s clear is that the money from the 340B program isn’t going to help patients afford their medicines and abuse of the program is hurting everyone,” said Jenkins. “It’s time for Congress to fix 340B.”
The 340B Drug Pricing Program, established in 1992, allows certain healthcare providers to purchase outpatient drugs at reduced prices. These savings are intended to support care for low-income and uninsured patients. The program is overseen by the Health Resources and Services Administration.
According to the U.S. Government Accountability Office (GAO), covered entities purchased approximately $6.1 billion in 340B drugs in 2018. Despite the program’s scale, the GAO reported limited information on how those savings were applied by providers and recommended enhanced oversight to ensure the program meets its intended purpose.
A study by IQVIA highlighted financial implications of the 340B Drug Pricing Program in Georgia, estimating an annual cost of $187 million on employers and workers due to lost drug rebates. This figure could increase to $209 million if legislation mandating contract pharmacies is enacted. Additionally, it was found that the cost per beneficiary for state and local government employers is about 6% higher than for commercial employers. Although Georgia currently has lower-than-average 340B activity, costs may rise if utilization rates align with national averages.
Jenkins leads communication initiatives on healthcare costs at PhRMA and previously worked with Representative Greg Walden and the House Energy and Commerce Committee in communications roles. She holds a master’s degree in Health Communication from Johns Hopkins University.
