Bill Cassidy, M.D., chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, announced he is requesting information from Apexus, the 340B Drug Pricing Program’s prime vendor, about its revenue and business practices, as part of an investigation into whether program discounts are reaching patients—highlighting concerns over rural clinics in Georgia struggling to access affordable medications.
“As I indicated in my report on the 340B Program last spring, a serious lack of transparency in the 340B Program prevents 340B discounts from translating to better access or lower costs for patients,” said Cassidy, Senator. “In light of Apexus’s role as the current 340B prime vendor, and given questions raised into its business practices, I am requesting information and data to better understand how Apexus generates its revenue and designs its commercial offerings related to the 340B Program.”
On February 2, 2026, Senator Cassidy detailed his request for Apexus to provide comprehensive information regarding its revenue, fees, and business practices. Apexus has held an exclusive contract with the Health Resources and Services Administration (HRSA) since 2004 and collects significant fees related to 340B drug sales. The investigation seeks to determine if these discounts benefit patients as intended.
Federal data indicate that drug purchases by 340B covered entities have surged from $2.4 billion in 2005 to $81.4 billion in 2024. Approximately 90% of these entities participate in the Prime Vendor Program. As the sole prime vendor for the program, Apexus plays a pivotal role in price negotiations and distribution support.
Data specific to Georgia reveal that a significant portion of 340B contract pharmacies are located outside the state or in affluent neighborhoods. Pharmacy Benefit Manager (PBM)-owned and chain pharmacies dominate this landscape. Large systems like Northside Hospital and AU Medical Center hold numerous contracts, raising concerns about offsite discount capture while rural clinics struggle with medication affordability.
Senator Cassidy’s medical background and leadership position as chairman of the Senate HELP Committee inform his examination of the growth of the 340B program and its impact on patients, providers, and taxpayers involved in federal health programs.
