Kasia Mulligan, national spokesperson for Patients Come First, said that the 340B rebate pilot program introduces oversight and ensures drug savings directly benefit patients. This statement was made in an op-ed.
"The lack of transparency and accountability measures in the current discount model has enabled hospitals to pocket the discounts, intended for patients, and divert the savings to fund unrelated projects, such as infrastructure improvements," said Mulligan. "So much that 83 percent of people support reforming the program to ensure those savings reach the patients who need them most. This rebate model provides the oversight that 340B has needed for decades, and nearly 80 percent of people agree it's a powerful change to the status quo. Participating pharmaceutical companies are taking steps toward greater transparency, aiming to improve the patient healthcare experience and ensure cost savings reach those patients."
Established in 1992 and administered by the Health Resources and Services Administration (HRSA), the 340B Drug Pricing Program was created to help healthcare providers stretch limited resources to serve vulnerable populations. It allows eligible entities to purchase outpatient drugs at reduced prices. These savings are intended to support access to care for low-income and uninsured patients.
A report by the National Alliance of Healthcare Purchaser Coalitions in 2024 found that prices at large 340B hospitals were 35% higher on average for common outpatient services compared to non-340B hospitals. The study estimated that this pricing difference results in an added $36 billion annually in healthcare costs for employers. These findings were based on an analysis of commercial claims data from over 25 million American workers and their families.
According to a study by IQVIA in 2023, the 340B program represented 7.2% of the total U.S. drug market by volume. The analysis revealed that a large share of the discounts gained through the program were retained by hospitals and contract pharmacies rather than being passed on to patients. The study also highlighted significant variability in how different institutions applied the discounts.
Mulligan is the national spokesperson for Patients Come First, a consumer patient advocacy group. The organization advocates for greater transparency, accountability, and patient-focused reforms in healthcare policy. Mulligan represents the group in public statements and written commentary on health system issues.
