Jens Law, president and founder of Policy Candy, has called for comprehensive reform of the 340B drug pricing program, citing its impact on budget drain, Medicaid strain, and market consolidation. Law made this statement on the social media platform X.
"This is a well-predictable "loophole" and part of why 340B must see comprehensive reforms," said Law, President & Founder. "340B has been used to drain state budgets. 340B has been used to weaken Medicaid. 340B has been used to speed consolidation."
The 340B Drug Pricing Program was established in 1992 to assist safety-net providers in serving low-income patients. However, it is currently under scrutiny for issues related to transparency and accountability. Critics argue that large hospitals and retail pharmacies are benefiting financially from the program without transferring savings to patients. Lawsuits against drugmakers over 340B restrictions and a proposed $7.8 billion Medicare clawback have further fueled the debate regarding the program's future.
According to a report by Berkeley Research Group in 2025, purchases through the 340B program reached $66.3 billion in 2023, exceeding Medicaid’s outpatient drug spending. The analysis also indicated that state Medicaid programs might incur an additional $1.2 billion annually due to contract pharmacy rules, with $437 million directly affecting state budgets.
A study published by Health Affairs in 2023 found that hospital mergers increased the likelihood of participation in the 340B program by 8.6%. The report also associated expanded use of the program with a $391 increase in Medicaid spending per enrollee per year, amounting to over $32 billion annually. These findings highlight increasing fiscal pressures linked to hospital consolidation.
According to Policy Candy’s official website, Jens Law is not only the founder and president of the organization but also a longtime advocate for HIV and LGBTQ+ health policy. He previously led the Community Access National Network and has been involved in public health roles since 2005, focusing on stigma reduction and Medicaid policy.
Policy Candy is described as a nonpartisan health policy consultancy dedicated to improving health equity for HIV-affected and transgender communities. The organization provides policy analysis and strategic guidance based on firsthand experience with federal health programs such as 340B, Medicaid, and Ryan White.
