The Wall Street Journal editorial board has announced in an editorial that hospitals are misusing the 340B Drug Pricing Program, originally intended to support care for low-income patients. The board cites rapid growth and limited oversight as key issues.
The 340B Drug Pricing Program was established by Congress in 1992 and is administered by the Health Resources and Services Administration (HRSA). It allows eligible hospitals and clinics to purchase outpatient drugs at significant discounts to stretch limited federal resources. The program’s intent is to expand access to care for low-income and uninsured patients by lowering medication costs.
According to a 2024 study in the National Library of Medicine, 340B contract pharmacy arrangements grew from about 1,300 in 2010 to over 60,000 by 2022. Researchers noted limited evidence that the financial benefits from these arrangements directly reduce patient drug costs. The study concluded that transparency is needed to ensure program savings support underserved patients.
An analysis by former Congressional Budget Office Director Dan Crippen estimated that the 340B program reduces federal and state tax revenues by up to $17 billion annually. Of that amount, $3.5 billion is lost at the state and local level. Crippen's report also estimated that the value of 340B drug discounts reached about $70 billion in 2023.
The Wall Street Journal Editorial Board consists of senior journalists who write unsigned opinion pieces reflecting the paper’s institutional views. Paul Gigot has led the board since 2001 as Editorial Page Editor. The board regularly addresses topics of national policy, economics, and governance, playing a role in shaping the public positions of the publication.
