Adam Fein, President of the Drug Channels Institute, expressed concerns over the 340B Drug Pricing Program, stating that “most 340B prescriptions are not benefiting patients as intended due to poor discount card usage and limited program oversight.” Fein made this statement on X.
“Only 3% to 5% of branded 340B prescriptions at retail and mail-order contract pharmacies were filled using a 340B drug discount card,” said Fein. “That’s shockingly low—especially in a country where 32% of the population is uninsured or underinsured. Yet another massive disconnect between the program’s benefits and patient access. Transparency and accountability are long overdue.”
According to the Government Accountability Office, the 340B Drug Pricing Program was established in 1992 to assist hospitals and clinics serving low-income patients by providing medications at discounted prices. However, there have been growing concerns about insufficient oversight and whether savings are being passed on to patients. In recent years, both lawmakers and watchdog groups have advocated for increased transparency regarding the use of 340B funds.
The Health Resources and Services Administration (HRSA) reported that purchases by 340B-covered entities amounted to $38 billion in 2020. This figure marks a significant increase from $12 billion in 2015, indicating more than a 200% growth over five years. HRSA releases these data to enhance transparency concerning the program’s scale and financial impact.
According to Citizen Portal, Georgia’s House Bill 690 was introduced to address issues related to Pharmacy Benefit Managers’ (PBMs) non-transparent practices that allegedly contribute to rising drug prices. Proponents argue that the bill is essential for consumer protection by increasing PBM regulation. The legislation aims to improve transparency and reduce medication costs.
Fein has served as President of Drug Channels Institute since March 2012, focusing on pharmaceutical economics and supply chain analysis. In January 2024, Drug Channels Institute was acquired by HMP Global, expanding its influence in healthcare insights and education. Fein continues to lead the organization from its headquarters in Philadelphia, Pennsylvania.
