Congress Urged to Reform 340B Program for Low-Income Patients

The federal 340B program is facing scrutiny as Congress considers reforms aimed at improving health care access for low-income and uninsured Americans. Initially designed to assist safety-net clinics and hospitals in extending their resources, the program has increasingly come under fire for failing to deliver savings to patients.

According to the Congressional Budget Office, spending on drugs through the 340B program surged from $6.6 billion in 2010 to nearly $44 billion in 2021. This represents an average annual growth rate of approximately 19%, significantly outpacing the 4% growth observed in overall brand-name drug spending over the same period. Despite these rising expenditures, many patients are not witnessing any reduction in costs at the pharmacy counter or in their overall medical bills.

The expansion of the 340B program has also contributed to a trend of hospital consolidation. Larger health systems are acquiring smaller clinics and private practices to enhance their 340B profits, leading to fewer care options for patients. As a result, many individuals are now compelled to travel greater distances to access medical services, exacerbating health disparities in underserved communities.

Research indicates that facilities participating in the 340B program frequently charge higher prices for both procedures and prescriptions. Consequently, patients who should benefit from the program are often left paying more while receiving less.

In light of these challenges, there is a growing call for Congress to reform the 340B program to better align it with the needs of patients. Efforts to introduce meaningful changes are underway, spearheaded by a bipartisan group that includes Sen. Tammy Baldwin from Wisconsin. Her involvement in this initiative has been met with appreciation from constituents who hope to see improvements in health care access and affordability.

The proposed reforms aim to ensure that the funds generated through the 340B program are directed towards those who require assistance the most. As discussions continue, the focus remains on fostering a health care system that prioritizes patient needs above all else.