Rogan O’Handley, a political commentator and attorney known online as "DC_Draino," has raised concerns about the alleged misuse of the 340B program by hospitals. He claims that these institutions are marking up discounted drugs and diverting the resulting profits to luxurious facilities rather than benefiting patients. O'Handley expressed his views on X, a social media platform.
"Democrats shut down the government demanding more healthcare dollars for illegal aliens," said O'Handley. "Meanwhile, hospitals like U of Miami use the 340B program to markup drugs and build palaces. They're lining pockets, not helping patients like the program intends."
The 340B law mandates drug manufacturers to provide outpatient medicines at significant discounts to eligible providers. However, it does not obligate hospitals to pass these savings directly to patients. While hospitals assert that they reinvest the discounts, questions remain regarding whether patients see any benefits at the point of sale. Critics highlight cases where hospital amenities expand while patient costs stay high.
According to independent analyses, the 340B program has experienced substantial growth. Consulting and federal sources indicate rapid expansion, with BRG estimating that 340B-priced drug purchases reached approximately $68 billion in 2023, growing around 22% annually over five years. Contract pharmacy arrangements have also surged, leading to increased scrutiny over who benefits financially from this growth.
Meanwhile, findings from the Federal Trade Commission (FTC) have intensified scrutiny of pharmacy benefit managers (PBMs). A January 14, 2025 FTC analysis reported that the "Big Three" PBMs—CVS Caremark, Express Scripts, and Optum—were inflating prices at affiliated pharmacies. This practice generated $7.3 billion in excess revenue from 2017 to 2022 while patient out-of-pocket costs amounted to $279 million in 2021. The FTC noted markups ranging from hundreds to thousands of percent and observed that higher-margin prescriptions were often directed towards PBM-owned networks.
Rogan Michael John O’Handley is a former entertainment lawyer turned political commentator with a significant social media presence. Public profiles reveal he holds degrees from Northeastern University and the University of Chicago Law School and has amassed millions of followers across various platforms.
