Buddy Carter, representative for Georgia’s 1st Congressional District, is calling for reforms to the federal 340B Drug Pricing Program, arguing that its rapid financial growth has outpaced oversight mechanisms needed to ensure accountability. Carter said on May 4 that he supports launching a rebate-model pilot to strengthen transparency, reduce potential misuse, and better align the program with its original patient-focused intent.
“The 340B program has grown to $80B+, but transparency and accountability haven’t kept up. This program was intended to serve patients, NOT the system that created the need for it in the first place. I’m supporting a rebate model pilot to restore accountability, prevent abuse, and protect care for those who need it most,” Carter said in a social media statement.
The 340B program requires drug manufacturers to sell outpatient drugs at discounted prices to eligible safety-net providers, including certain hospitals and federal grantees. According to the Health Resources and Services Administration (HRSA), the program is designed to help covered entities stretch limited resources, expand services, and reach more eligible patients in underserved communities.
HRSA reported that covered entities purchased $81.4 billion in discounted outpatient drugs through the program in calendar year 2024, underscoring continued expansion across hospitals, clinics, and other eligible providers. That total places the program well above the $80 billion threshold that has become central to ongoing policy debates over oversight and accountability.
The Government Accountability Office (GAO) has also noted rapid growth in contract pharmacy arrangements tied to the program. The number of pharmacies participating in 340B contracts increased from roughly 1,300 in 2010 to nearly 20,000 in 2017, expanding the network of third-party entities involved in dispensing discounted drugs.
GAO has additionally found that the statute does not require hospitals to pass discounted prices directly to patients at the pharmacy counter, meaning patients may still face cost-sharing based on higher list prices while covered entities and contract pharmacies retain the difference between acquisition costs and reimbursement.
Carter represents Georgia’s 1st Congressional District and holds a Bachelor of Science in Pharmacy from the University of Georgia. He has won reelection in multiple cycles, including victories in 2014, 2018, 2020, 2022, and 2024.
