Category: 340B

Study after study after study: Contract pharmacy expansion not aligned in communities 340B is meant to serve

Evidence continues to show that 340B hospitals and their contract pharmacies are often not helping patients access their medicines, especially patients in socioeconomically disadvantaged areas. Contract pharmacies dispense 340B medicines on behalf of “covered entities,” which include certain health clinics and hospitals. In 2010, HRSA dismissed concerns raised by stakeholders about the increased program integrity […]

New research finds gaps in charity care provided by 340B hospitals

The 340B program was created to support safety-net clinics and qualifying hospitals by establishing a discounted medicine program funded by biopharmaceutical manufacturers to help vulnerable patients access medicines. Unfortunately, the worst kept secret about the 340B program is the lack of clear patient benefit. There are zero patient protections and zero reporting requirements for covered […]

340B Court Cases

The Public Health Service Act (PHSA) in 1992, created a program to allow hospitals providing care for underserved communities to be able to access discounted drugs. The program–known as the 340B Drug Pricing Program, has been described as follows: …[The] law requires pharmaceutical manufacturers participating in the Medicaid program to enter into a second agreement […]

By the numbers: Contract pharmacy participation in the 340B program

There are many things that set the 340B program apart from other federal prescription drug programs, namely that patients are not the primary beneficiary. While in other programs, patients qualify for Medicaid or Medicare based on clear eligibility criteria, hospitals and clinics qualify for 340B based on very loose criteria and then receive discounts on […]

340B 101: Three charts show the program maximizes hospitals’ bottom line with little consideration for patients

The 340B program was created 30 years ago to support safety-net clinics and qualifying hospitals by establishing a discounted medicine program funded by biopharmaceutical manufacturers. The aim was to help vulnerable patients access medicines at these safety-net providers. Unfortunately, the program today has become largely unrecognizable as profit incentives have fueled rapid program expansion, particularly […]

New study finds more than half of brand medicine spending goes to the supply chain and others

More than half of total spending on brand medicines went to the supply chain, middlemen and other stakeholders in 2020 according to a new analysis from the Berkeley Research Group (BRG). These new findings help illuminate the problems that exist throughout the health care system and why holistic, patient-centered solutions are needed to make medicines […]

Making medicines more affordable: Preserving safety-net programs like 340B

Common-sense reforms can help ensure everyone benefits from America’s engine of innovation and receives the care they need and deserve. In this series, we’re taking a closer look at PhRMA’s advocacy efforts to make medicines more affordable, part of our patient-centered agenda, which aims to lower barriers between our industry’s medical innovations and patients who need […]

Fact Check: Do contract pharmacies help patients access 340B medicines? No.

Over the years, there has been repeated acknowledgement that the 340B program is often not supporting the patients it was intended to help. (If you need a reminder, check out this piece in the New England Journal of Medicine or this Government Accountability Office report or even this new piece in the American Journal of […]

New video: Why changes to the 340B program are essential for patients

The 340B program is confusing. That’s a fact that likely no one would question. In fact, it is often forgotten in broader discussions about our health care system even though it is the second largest federal prescription drug program. That’s a problem considering the ever-growing evidence that 340B isn’t working in the best interests of […]

New analysis adds to research questioning whether 340B is working as Congress intended

As the 340B program has grown over the past decade, there has been increased interest in it and ensuring it works in the best interest of patients. Unfortunately, study after study finds that often isn’t the case. In fact, perverse incentives and a lack of hospital accountability seem to undermine 340B. A new study published […]

340B hospitals among those that provide lowest levels of community benefit across the country

The 340B program reached $38 billion in sales at the discounted price in 2020. This is a 27% increase over sales in 2019, and the program is now more than four times the size it was in 2014. Unfortunately, despite pharmaceutical manufacturers paying more and more money in 340B discounts, there is no evidence that […]

Getting the 340B program back on track in 2021

As our nation continues to fight a global pandemic, the need for access to affordable and quality health care feels even more pressing. This is especially true for vulnerable patients who have been disproportionately impacted by COVID-19. That’s why it has never been more important for policymakers to ensure federal programs, like the 340B program, […]

Correcting the record: Biopharmaceutical companies remain committed to the 340B program and helping patients

The New York Times recently ran a story that paints an inaccurate picture of the 340B program, contract pharmacy participation in the program and the biopharmaceutical industry’s commitment to the program. Today, we’re correcting the record. Fact: Manufacturers are still giving the 340B discounts, as required by law, to “covered entities” – more than 12,700 […]

Key takeaways from new GAO report on covered entities’ lack of compliance with 340B requirements

In case you missed it, the Government Accountability Office (GAO) released a new report looking at the 340B program and the mechanisms the government has to help ensure compliance with the program’s requirements. This is the latest in series of reports from the government watchdog that has raised concerns with 340B program integrity. Earlier this […]

PhRMA submits comments on ways to refocus the 340B program on America’s vulnerable patients

In response to the Request for Input on Modernizing the 340B Drug Pricing Program issued by Representative Greg Walden and Senator Lamar Alexander, PhRMA has outlined a number of commonsense ways policymakers can get the 340B program back on track and refocused on patients.

340B hospitals and for-profit pharmacies generating significant revenue from program meant to help needy patients

The 340B program – a safety-net federal drug program meant to help vulnerable Americans – has become dominated by many large hospitals and for-profit corporations with no clear evidence they are always helping needy patients. At a time when too many Americans struggle to access the medicines and care they need, it is alarming to […]

Growth in 340B program has not translated to improvements for patients

Is 340B benefiting the vulnerable, uninsured patients it was designed to help? That’s the most important question policymakers should be asking in any discussion about the 340B program. Unfortunately, this program is essentially a black box with lax reporting requirements and weak oversight – which means there is little to no clear evidence that patients […]