Molly Jenkins, Senior Director of Public Affairs at the Pharmaceutical Research and Manufacturers of America (PhRMA), has expressed concerns about the 340B program's growth. Jenkins said that the program's rapid expansion is benefiting large tax-exempt hospitals without providing significant advantages to vulnerable patients.
"The massive federal drug program most have never heard of, 340B, is now $81.4 billion in size as of 2024," said Jenkins. "The 340B program, which costs taxpayers billions each year, is rapidly growing due to large, tax-exempt hospitals exploiting the program for profit with no evidence patients are benefitting. Big tax-exempt hospitals can exploit the 340B program by buying medicines at a steep discount, sometimes as little as a penny, and marking them up, by thousands. Because there are no guardrails on how hospitals and clinics use 340B profits, the money often isn't going to help low-income and uninsured patients afford medicines."
According to the Health Resources and Services Administration (HRSA), covered entities spent $81.4 billion on outpatient drugs through the 340B program in 2024. This expenditure underscores the program's significant expansion, making it the second-largest federal drug initiative. Concerns have been raised regarding whether oversight is keeping pace with this growth.
National data indicates that from 2013 to 2021, revenue from the 340B program increased by 374%, while the number of vulnerable patients served decreased by nearly half. This trend suggests that the program may not be effectively reaching its intended low-income and uninsured beneficiaries. Experts advocate for reforms to realign the program with its original safety-net objectives.
A study conducted at the U.S. county level revealed that regions with higher activity in 340B hospitals tend to experience elevated Affordable Care Act benchmark premiums. This correlation implies that the program might inadvertently contribute to rising local insurance costs, emphasizing a potential need for reform to mitigate unintended economic consequences.
Jenkins' professional background includes her role as Senior Director of Public Affairs at PhRMA, where she focuses on communication strategies related to cost and value priorities. Her previous experience encompasses leading issue-advocacy and reputation campaigns at a public affairs firm and various congressional communications roles on Capitol Hill.
