Ross Marchand, executive director of the Taxpayers Protection Alliance, said on Jan. 21 that the federal 340B drug pricing program has expanded beyond its original intent and may be contributing to higher costs for patients and taxpayers during a recent episode of the Health Policy Podcast.
Marchand said the program, which allows eligible hospitals and healthcare providers to purchase drugs at discounted prices, has evolved in ways that enable institutions to retain savings rather than pass them on to patients. "The 340B program is being abused… patients lose and taxpayers lose as a result," Marchand said, describing how providers can acquire medications at reduced prices while billing insurers and patients at higher rates.
The 340B Drug Pricing Program was established by Congress in 1992 to help healthcare providers serving low-income and uninsured populations stretch limited resources and expand access to care. However, the program has grown significantly over time, with participating entities purchasing billions of dollars in discounted drugs annually.
Critics of the program have argued that its structure creates financial incentives that may not align with patient affordability, particularly in cases where discounts are not directly reflected in lower out-of-pocket costs. Marchand said limited transparency in how savings are used has contributed to ongoing policy debates about oversight and reform.
Washington D.C.-based Taxpayers Protection Alliance Foundation is a non-profit organization that advocates for government transparency through educating the public through research, investigative reporting, and analysis about the effects of excessive taxation and spending by all levels of government. Founded in 2011, its current president is David Williams.
More information about these comments can be found in the full discussion available on the Health Policy Podcast or by visiting the organization's press release.
