Scott LaGanga, Executive Vice President of State Advocacy at the Pharmaceutical Research and Manufacturers of America (PhRMA), said that savings from the 340B prescription drug program should benefit eligible patients rather than hospital finances. The statement was made on X.
“Maine state lawmaker is correct in insisting that price discounts in the 340B prescription drug program should be going to eligible consumers, not to hospital coffers,” said LaGanga.
The 340B Drug Pricing Program, established in 1992, allows eligible health providers to purchase outpatient medications at reduced prices to support underserved patients. The program aims to help hospitals stretch resources and improve care access for low-income communities. However, a May 2025 opinion column in the Piscataquis Observer argued that the program now lacks accountability, with patients often not experiencing the intended cost relief.
A 2024 report from the National Alliance of Healthcare Purchaser Coalitions found that large 340B hospitals charge an average of 35% more for outpatient services compared to non-340B hospitals. This pricing gap contributes an estimated $36 billion annually in excess costs for employers. The analysis reviewed commercial claims data from over 25 million workers and families.
According to PhRMA, Georgia’s 340B program includes 57 hospitals managing over 1,000 pharmacy contracts. However, most contract pharmacies are not located in underserved areas. The report also noted that many participating hospitals provide below-average charity care, raising concerns about the program’s effectiveness in reaching vulnerable populations.
LaGanga leads government affairs and policy across all 50 states at PhRMA. He holds master’s degrees in public affairs and international business and has directed national campaigns focused on patient access, biopharmaceutical innovation, and state-level healthcare reform.
