PhRMA Statement on the 340B Drug Pricing Program

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PhRMA

11/12/2024 12:00:00 AM

WASHINGTON, D.C. (November 12, 2024) - Today, Pharmaceutical Research and Manufacturers of America (PhRMA) Senior Vice President Alex Schriver released the following statement on the 340B drug pricing program:

"We continue to have serious concerns about persistent and often illegal abuse of 340B, which is driving up costs for patients, employers and taxpayers. The law specifically prohibits hospitals from getting a 340B discount on a medicine that also generates a Medicaid rebate or for prescriptions that do not qualify for the program. Yet both the Government Accountability Office and the HHS Office of Inspector General have repeatedly said these violations are widespread."

"It's no wonder manufacturers have taken steps of their own to attempt to rein in rampant hospital abuse of this important safety net program. Hospital abuse of 340B is one of the reasons the program continues to balloon in size letting hospitals make billions of dollars in profits from marking up the prices of medicines they charge to employers, Medicare, Medicaid and patients. Hospitals are taking a 'just trust me' approach to requesting 340B discounts on medicines despite well-documented abuses. For too long, HHS has refused to implement basic transparency and accountability requirements needed to prevent illegal activity."

About PhRMA

The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country's leading innovative biopharmaceutical research companies, which are laser focused on developing innovative medicines that transform lives and create a healthier world. Together, we are fighting for solutions to ensure patients can access and afford medicines that prevent, treat and cure disease. Over the last decade, PhRMA member companies have invested more than $800 billion in the search for new treatments and cures, and they support nearly five million jobs in the United States.

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