The 340B Drug Pricing Program was created to help safety-net providers stretch scarce resources and serve vulnerable patients. Under the program, drug manufacturers must sell medications to eligible providers at discounted prices. Providers may then bill insurers at market rates and keep the difference as revenue—a trade-off intended to support uncompensated or discounted care.

The 340B program helps sustain vital services.  However, the tremendous growth in the program – from 6.6 billion spent on discounted drugs in 2010 to 43.9 billion by 2021 and the lack of transparency related to who reaps the benefits from the discount - raises concerns.

A report from Minnesota tracking 340b funds in the state found that smaller clinics and safety net providers benefit less from the program than largest hospital systems, with contract pharmacies and third-party administrators taking a significant portion of the revenue. Meanwhile, pharmaceutical companies are challenging the program, and the federal government is piloting changes that may make it harder for smaller health care entities to benefit.

The integrity of the 340B program is essential to protecting the original purpose – ensuring discounted drugs are available for those who otherwise can’t afford them. Multiple states have implemented transparency efforts to better understand how the 340B program operates, who it benefits, and potential impacts on the healthcare system overall.

I will be introducing legislation to increase transparency in the 340B program modeled on existing transparency mandates in other states. This bill will require providers who dispense 340B discounted drugs to report how much they generate from the program, and how much they spend administratively.

Please join me by cosponsoring legislation to provide greater accountability to the 340B program and ensure the program supports patients as intended.