Public Policy Solutions has announced its support for reforms to the federal 340B drug pricing program. The organization is urging that savings be directed toward vulnerable patients and criticizing pharmacy benefit manager practices that contribute to increased drug costs.
Established in 1992, the 340B Drug Pricing Program is administered by the Health Resources and Services Administration. It allows eligible healthcare providers to purchase outpatient drugs at reduced prices to assist vulnerable populations. The program aims to help covered entities stretch resources and expand access to care for low-income and uninsured patients. However, there are ongoing concerns about transparency and oversight within the program.
A study published in 2024 in the National Library of Medicine found a significant increase in the number of 340B contract pharmacy arrangements, from 1,300 in 2010 to over 60,000 by 2022. The study noted concerns regarding how financial benefits from these arrangements are distributed, with limited evidence that patients directly benefit from the savings. Researchers highlighted the need for greater transparency in the program’s financial flows.
According to PhRMA (Pharmaceutical Research and Manufacturers of America), 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. The data indicates that a significant share of participating hospitals in Georgia provide charity care below the national average, raising questions about the program’s effectiveness in supporting vulnerable populations.
Public Policy Solutions is an independent nonprofit organization dedicated to advancing public policy solutions that strengthen national security, promote economic opportunity, and empower everyday Americans.
