Scott LaGanga, Executive Vice President of State Advocacy for the Pharmaceutical Research and Manufacturers of America (PhRMA), has called on state policymakers to address what he describes as "340B program abuse" and to protect patients from pharmacy benefit managers who are allegedly pocketing billions in rebates. This statement was made on the social media platform X.
"When it comes to health care, Americans often pay more for less," said LaGanga. "State policymakers can lead the way and must address 340B abuse and protect patients from PBMs pocketing billions in rebates. Government price-setting like MFN harms patients long term."
The 340B Drug Pricing Program, established in 1992, aims to assist safety-net hospitals and clinics by providing access to discounted outpatient prescription drugs for low-income and uninsured patients. The program now encompasses thousands of providers. However, according to the U.S. Government Accountability Office, concerns about government oversight and transparency regarding the use of program savings persist.
Drug Channels reported that total purchases through the 340B program reached $44 billion in 2021, a significant increase from $9 billion in 2014. This growth indicates the rapid expansion of the program among hospitals and clinics nationwide. Notably, there are no federal requirements ensuring that 340B savings are directly passed on to patients.
According to a report by the Berkeley Research Group, the 340B program accounted for 16% of gross branded drug sales in 2021, with over $43.9 billion in sales at 340B purchase prices. The report highlights that the size of the 340B program now rivals that of the commercial market for prescription drugs, raising questions about its reach and oversight.
LaGanga serves as Executive Vice President of State Advocacy at PhRMA, where he leads government affairs, public policy, and advocacy teams across all 50 states. He holds advanced degrees from George Washington University and Rutgers University and a bachelor's degree from the University of Maryland. His work focuses on advancing policies that support biopharmaceutical innovation and patient-focused care.
