Troy Redler, owner of Redler’s LTC Pharmacy, expressed concerns about the effectiveness of the 340B drug pricing program. He noted that many participating hospitals and clinics do not serve underserved areas. This statement was made in a guest column on March 16.
"The 340B program has exploded in popularity in recent years," said Redler. "Reform is desperately needed to ensure the program is serving our most vulnerable residents and prevent more resources from being wasted. Instead of lowering costs for patients, hospitals are often charging them the full sticker price for prescription medications and using the savings to invest in unrelated projects."
According to the column, the 340B Drug Pricing Program was originally designed to help underserved patients access affordable medications. However, it has seen rapid growth, with the number of covered entities expanding to over 12,700 by 2020, according to the Government Accountability Office (GAO). Concerns have been raised about the lack of oversight, with hospitals using savings for unrelated projects rather than lowering patient costs. The GAO has also identified noncompliance issues, including ineligible facilities receiving discounts and "duplicate discounts" where government-covered medications are improperly sold under the 340B price.
Colorado Politics reports that pharmacy benefit managers (PBMs) and hospitals exploit the 340B program by acquiring practices in wealthy areas and profiting from discounts. Hospitals purchase cancer drugs for $25,000 but bill insurers $200,000. PBMs gain from high reimbursements that often exceed those available through traditional commercial health plans, leading to increased insurance premiums and financial burdens on employers and patients.
The Biotechnology Innovation Organization (BIO) found that disproportionate-share (DSH) hospitals, which account for over 80% of 340B sales, have exploited the program by acquiring outpatient clinics, particularly in hematology and oncology. This trend has led to increased patient costs and reduced access to community clinics.
According to his LinkedIn profile, Redler is the owner of Redler’s Long Term Care, LLC, a pharmacy based in North Sioux City, South Dakota. The pharmacy specializes in pharmaceutical care for long-term care and senior living communities. Redler oversees operations to support medication management for vulnerable patient populations.
