U.S. Senator Bill Cassidy, M.D., Chair of the Senate Health, Education, Labor and Pensions (HELP) Committee, expressed concerns about the 340B program's expansion, stating it contributes to increased healthcare costs for patients and taxpayers. His remarks were made in a video posted on X.
"anyone who says that 340B is cost-neutral to taxpayers is not paying attention," said Cassidy, Senator & Chairman. "As the 340B program grows, so have health care costs. the program's dramatic growth led to higher costs for patients and for taxpayers."
On October 23, 2025, the Senate HELP Committee convened a hearing titled "The 340B Program: Examining Its Growth and Impact on Patients," chaired by Senator Cassidy. The session examined whether the program's growth aligns with its mission to support vulnerable patients and explored its implications for affordability and federal spending.
According to a 2024 analysis by Health Affairs Scholar, researchers found that hospitals participating in the 340B Drug Pricing Program often achieved significant margins from discounted drug purchases. However, there was little consistent evidence that these savings were used to expand access or reduce out-of-pocket costs for low-income patients. The study also concluded that 340B hospitals did not generally provide more charity care than non-340B institutions, questioning the program’s intended benefits.
During the Senate HELP hearing, the Congressional Budget Office (CBO) testified that the 340B program "encourages behaviors that tend to increase federal spending." This includes incentives to prescribe more expensive drugs and reduced manufacturer rebates to Medicare Part D and commercial plans. These dynamics lead to higher insurer costs and necessitate larger federal premium subsidies while vertical integration associated with 340B increases prices paid by Medicare and commercial insurers.
Senator Cassidy is noted as both a physician and the current chairman of the Senate HELP Committee. According to his Senate biography, he became HELP Ranking Member in 2023 and chair in 2025, marking him as the first physician to hold this position. His medical background and leadership role provide context for his scrutiny of the 340B program's growth and its impact on patients, providers, and taxpayers within federal health programs.
