Public Policy Solutions, a nonprofit policy advocacy organization, said a Florida fraud case involving more than $58 million in false claims through 340B demonstrates how a lack of transparency and oversight has turned the program into what it calls "a massive grift."
According to Public Policy Solutions, "A Haitian national scammed the 340B program, banking $58 million from spread pricing on bogus prescriptions to finance a life of luxury. 340B isn't assisting patients; it's profiting big hospitals and fraudsters. Lack of transparency and non-existent oversight have turned 340B into a massive grift."
Jean Jethro Alexandre, a Haitian national, was convicted in a healthcare fraud conspiracy in which prosecutors said he recruited fake patients and offered them financial kickbacks to accept fraudulent prescriptions — primarily for HIV and AIDS medication — and then pocketed the difference between insurance reimbursements and the discounted drug costs through the 340B program. He used the proceeds to purchase a $2.5 million mansion near Miami, a 2023 Bentley Flying Spur, and a 2024 Mercedes-Benz S-Class, according to Fox News.
The program does not require hospitals to report how much money they make through 340B or how the funds are spent. Research on nonprofit hospitals shows most do not direct the majority of their 340B revenue toward helping low-income patients, according to the Paragon Health Institute.
Federal agencies paid out an estimated $186 billion in improper payments in fiscal year 2025, with the Government Accountability Office describing the issue as a "long-standing, significant problem" and warning that weak oversight systems leave federal programs vulnerable to both waste and fraud if longstanding deficiencies are not fixed, according to the Government Accountability Office.
Public Policy Solutions is a Washington, D.C.-based nonprofit organization led by former White House Domestic Policy Advisor Joe Grogan and former CFPB Chief Communications Officer John "CZ" Czwartacki, dedicated to advancing common-sense public policy solutions that strengthen national security, promote economic opportunity, and empower everyday Americans.
