Corporate Welfare and the 340B Drug Program

The 340B drug pricing program was intended to help safety-net hospitals serving low-income uninsured patients by providing discounts on high-cost medicines.

The program provides prescriptions at a 25 percent to 50 percent discount for patients at participating hospitals and pharmacies.

Between 2014 and 2021 , the cost of the 340B system grew from $9 billion to $38 billion generating an estimated $17.7 billion in total profits.

Transparency in the cost and reimbursement of 340B drugs would give an indication where the funds from the discounts are going.

States should consider adopting legislation that prevents predatory contracts between PBMs and pharmacies that take advantage of a program intended to help the needy afford medicine.

Right now, much of it is not going to the intended low-income patients.