Thomas Johnson, executive director of the Alliance to Save America’s 340B Program, said on April 22 that the 340B Drug Pricing Program remains important for vulnerable patients but requires stronger oversight, transparency, and accountability to ensure savings support access to care.
“If the program is growing rapidly, costs are increasing, and there is little evidence that savings are reliably improving access for vulnerable patients, the conclusion is clear: it is time to modernize and strengthen 340B through renewed congressional oversight and greater transparency and accountability,” Johnson wrote in Black Belt News Network. “Above all, 340B must serve patients.”
The 340B program requires drug manufacturers to sell outpatient drugs at discounted prices to eligible safety-net hospitals and clinics. It was designed to help providers serving low-income and uninsured patients stretch limited resources; however, the program does not require discounts to be passed directly to patients or savings to be used for specific services, according to JAMA Health Forum.
Federal oversight gaps remain central to compliance concerns with the program. GAO said HRSA’s audit process does not ensure covered entities fully address noncompliance, does not fully assess duplicate discounts, and does not ensure only eligible hospitals participate, according to the U.S. Government Accountability Office.
Spending on drugs purchased through the 340B Prime Vendor Program grew from $6.6 billion in 2010 to $43.9 billion in 2021, an average annual increase of roughly 19%, according to the Congressional Budget Office.
ASAP 340B describes itself as a coalition working to ensure the 340B program supports true safety-net providers and the communities they serve. Johnson serves as executive director and has 30 years of professional experience in health care, nonprofit, and association management.
