The Case for 340B Reform Is Made on Capitol Hill

At a Capitol Hill briefing on the urgent need for reforms to the 340B Drug Pricing Program, the case was made for prompt action to fix the program. The event took place at the Senate Visitors Center on September 23, 2024, and was hosted by the Council for Citizens Against Government Waste (CCAGW).

The panel was moderated by Monica Popp, founding partner of Marshall and Popp, and the speakers were CCAGW President Tom Schatz; Pioneer Institute Senior Fellow & Director of Pioneer Life Sciences Initiative Dr. William Smith; and Patients Rising Chief Mission Officer Terry Wilcox.

The discussion began with a brief description by Monica Popp of 340B, followed by Tom Schatz's remarks, which focused on the legislative history and abuses of 340B, reports from both government and private sector sources on its costs and failures, the lack of action by Congress to adopt needed reforms, and CCAGW's work on 340B. Dr. Smith discussed the Pioneer Institute's analysis of 340B abuses, including the lack of charity care at many hospitals and the "arbitrage" of charging higher prices for insured patients and pocketing the difference rather than passing on the savings to them, as well as how the program had grown to $124 billion. Terry Wilcox talked about the impact on uninsured patients who are sometimes caught between jobs and find themselves with short-term insurance coverage and no access to 340B benefits and suggested that there should be greater transparency for patients about being treated at 340B hospitals.

The panelists agreed that a clear definition of a 340B patient is essential to better serve the low-income and uninsured individuals the program was originally designed to help, and that more transparency about how the money is being spent would give taxpayers and legislators a clearer picture of how the program is being abused and should be fixed.

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