Ryan Long, Director of Congressional Relations and Senior Research Fellow for Paragon Health Institute, said overhauling the 340B drug discount program by detaching aid from specific medications would decrease premiums and out-of-pocket expenses for patients.
Long’s comments come amid ongoing debate about the effectiveness of the 340B program. The program has faced criticism for tying aid to prescribed drugs, which some say encourages consolidation among healthcare providers and increases federal spending without clear benefits to patients. Long posted on X about the need to revise the program, stating that its current design fosters excess spending and does not prioritize patient needs.
"Have to reform 340B so assistance is not based off of what drugs are prescribed or administered. This would save patients money in premiums and cost sharing. Reduce wasteful federal programs spending and eliminate a very profitable incentive to consolidate," Long said.
According to a Congressional Budget Office report, the current structure of the 340B program raises federal costs by encouraging more prescriptions of higher-priced drugs while reducing rebates. The report found no evidence that these practices directly benefit patients. Instead, hospitals have profited from the system, leading to mergers that drive up healthcare expenses overall.
A study by the National Alliance of Healthcare Purchaser Coalitions estimated that employers face $36 billion annually in extra hospital costs due to elevated prices at major facilities participating in 340B. These costs stem from lost rebates, markups, and altered prescribing patterns.
Recent data from PhRMA shows that the size of the 340B program reached $81.4 billion in 2024, making it the second-largest federal drug initiative with over 20% annual growth but no measurable improvement in patient affordability or access.
