Steve Forbes, Chairman and Editor-in-Chief of Forbes Media, criticized the federal 340B drug discount program, arguing that hospitals have exploited unclear rules to use discounted drug savings in ways that are not directly tied to patient care.
“Hospitals have used the vague structure of programs like 340B to divert taxpayer-subsidized benefits for patients to unrelated interests — including left-wing politics,” Forbes said in an X post.
"This lawsuit will advance President Trump’s goals of bringing transparency to healthcare," he added.
His remarks follow a lawsuit filed April 8, 2026, by biopharmaceutical company AbbVie, which is seeking judicial clarification of eligibility rules under the 340B program. The program allows qualifying healthcare providers to purchase outpatient prescription drugs at reduced prices.
The case centers on longstanding federal guidance from 1996 that acknowledged uncertainty in defining who qualifies as a “patient” under the program. AbbVie contends that this ambiguity has allowed inconsistent interpretations and is asking the court to establish a clearer standard tied to the nature of the provider-patient relationship.
The controversy comes as the program has expanded significantly in scale. According to the Health Resources and Services Administration, participating entities purchased $81.4 billion in outpatient drugs through 340B in 2024.
Regulatory oversight has also become more complex with the rise of contract pharmacy arrangements, which grew from about 1,300 locations in 2010 to nearly 20,000 in 2017. The Government Accountability Office has reported that many of these pharmacies operate in retail settings serving the general public, raising compliance challenges.
Hospital charity care reporting shows mixed outcomes. In fiscal year 2021, more than a third of disproportionate share hospitals reported spending less than 1% of operating costs on charity care, while a majority reported levels below national hospital averages.
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media, where he oversees one of the most widely recognized business media organizations in the United States. He contributes editorial content focused on economics and public policy.He also hosts “What’s Ahead,” a program produced by Forbes that features interviews with political leaders, business executives, and policy experts.
