Many patients never see the benefits of 340B because hospitals and pharmacies keep the profits for themselves. There is even evidence that 340B is driving up costs for patients. Patients must come first - and must more directly benefit from the discounts provided by manufacturers.

There has been evidence over the years of covered entities abusing the lax definition of a 340B patient to increase their profits by seeking discounts on medicines that were not provided to true 340B patients. By more clearly defining who is a 340B patient and ensuring vulnerable patients benefit, the program can more effectively help people in need and make it harder for participating hospitals and pharmacies to use it for their own financial gain.

There are no requirements for how participating hospitals and pharmacies must use their 340B discounts to help patients and no way to know whether patients benefit from 340B. The program needs common-sense transparency reporting requirements that hold hospitals and pharmacies accountable and ensure patients are seeing the benefits.

Lack of oversight in the 340B program has allowed for thousands of instances of noncompliance by hospitals and pharmacies and opened the door for ineligible entities to take advantage of the program’s financial benefits. The 340B program needs more oversight and tighter rules to prevent abuse.