The International Foundation for Autoimmune & Autoinflammatory Arthritis has raised concerns about the rising costs in the federal 340B Drug Pricing Program, stating that these increases are not benefiting patients. The organization has called for urgent reforms to enhance accountability and transparency, as reported in a statement on X.
The 340B Drug Pricing Program mandates pharmaceutical manufacturers to offer discounted outpatient drugs to eligible hospitals and clinics. However, multiple analyses indicate that a significant portion of these savings does not directly reduce patient out-of-pocket expenses. Critics argue that the program has deviated from its original purpose, with reform advocates emphasizing the need for clearer rules and reporting to ensure discounts reach patients who need them.
According to the Health Resources and Services Administration, drug purchases under the 340B program have surged from approximately $6.6 billion in 2010 to over $43.9 billion in 2021, indicating a substantial increase in program spending. Despite this growth, oversight mechanisms have not expanded proportionally, raising concerns about the integrity of the program. Experts caution that without robust audits and transparency measures, it remains uncertain how much of this expansion benefits safety-net patients.
A report by the Government Accountability Office (GAO) in 2023 found that contract pharmacy arrangements—now widely used across 340B entities—contribute significantly to revenue generation for hospitals without consistent evidence that discounts are passed on to patients. The GAO highlighted large variability in how entities utilize savings and called for improved guidance, data collection, and monitoring so Congress can better evaluate whether 340B is achieving its safety-net objectives.
The International Foundation for Autoimmune & Autoinflammatory Arthritis (AiArthritis), a nonprofit organization focused on improving the lives of individuals with autoimmune arthritis diseases through education, advocacy, and patient-centered policy engagement, regularly participates in federal health policy discussions. Through research partnerships and patient-focused initiatives, AiArthritis amplifies community voices concerning access and affordability issues.
