Kasia Mulligan, National Spokesperson for Patients Come First, said that Americans believe the 340B Drug Pricing Program should undergo reform as part of efforts to address inefficiencies in government programs. Mulligan made this statement in a press release on March 18.
"The call for reforming broken government programs is gaining momentum," said Mulligan. "Americans believe 340B should be part of that effort. Lawmakers must step up."
According to a poll conducted by Patients Come First, there is strong public support for increased transparency and accountability in drug discount programs like 340B. The survey found that 86% of respondents believe hospitals and healthcare providers should be required to pass along savings from discounted prescription drug programs to lower patient costs. Furthermore, 77% specifically agree that providers should transfer 100% of these savings to reduce medication expenses by up to 50%. Additionally, 86% of those surveyed believe lawmakers should act to close loopholes in the system, ensuring cost reductions directly benefit patients in need.
Pharmacy Times reports that the 340B Drug Pricing Program was established in 1992 and mandates drug manufacturers provide outpatient drugs at significantly reduced prices to eligible healthcare organizations serving low-income and uninsured patients. However, concerns have been raised about deviations from the program's original intent, with allegations that some hospitals profit by selling discounted drugs at higher prices to insured patients.
The Times Union highlights that providers within the state's 340B program generated at least $630 million in revenue in 2023, with the largest hospitals claiming around $500 million. Notably, hospitals paid approximately $120 million—nearly 20% of total revenue—to third-party administrators, primarily contract pharmacies.
In New York, more than 100 hospitals participate in the 340B program; however, only 24% of the contract pharmacies they use are located in medically underserved areas. Additionally, Mintz reports that 175 of these pharmacies operate outside the state, indicating disparities in access to discounted medications for populations intended to benefit from the program.
Patients Come First describes Mulligan as a strategic communications and policy expert with experience in both public and private sectors specializing in healthcare policy reform. She has held roles in public policy think tanks, led advocacy campaigns at state and federal levels, served as a U.S. Senate communications director, and later founded a public affairs consultancy.
