Kasia Mulligan, a spokesperson for the Patients Come First advocacy group, said that the 340B drug discount program lacks transparency and has been exploited by hospitals, preventing savings from reaching low-income patients. She made this statement in the DC Journal.
"The 340B drug pricing program was a genuine desire to make prescription medications more affordable for low-income Americans and to increase hospitals' care for underserved populations," said Mulligan. "Like many well-intentioned government programs, bad actors have taken advantage of 340B and abused the system for their own gain. The 340B program's fatal flaw is a lack of transparency. Americans are sick and tired of middlemen preventing patients from receiving necessary care."
According to Mulligan, although the 340B program was designed to help underserved patients, it is now widely abused. She said hospitals are using savings for unrelated expenses like executive pay. Mulligan cited polling showing that 86 percent of Americans want lawmakers to close loopholes to ensure transparency. She also emphasized that a rebate model could be a practical first step to ensure savings are passed to patients.
A 2023 study published in the Journal of Managed Care & Specialty Pharmacy found that hospitals in the 340B program often do not provide direct discounts to patients. The research indicated that program savings are frequently retained by institutions rather than lowering patient costs. The authors concluded that increased oversight could improve alignment with the program’s original intent.
According to a 2023 study published in Health Affairs Scholar, researchers examined the geographic distribution of hospitals participating in the 340B program. The study found that hospitals located in higher-income and better-insured areas were more likely to benefit from the program compared to those in medically underserved regions. The authors concluded that this distribution pattern may limit the program’s ability to effectively reach low-income and uninsured populations.
Mulligan is the national spokesperson for Patients Come First, which advocates for greater transparency, accountability, and patient-focused reforms in healthcare policy. She represents the group in public statements and written commentary on health system issues.
