National Consumer League’s latest podcast highlights the disparities with the 340B drug pricing program in Colorado
January 6, 2024
Contact: Lisa McDonald V.P. of Communications 202-207-2829
Washington, DC – The National Consumer League (NCL) has released a new episode of its We Can Do This podcast, shedding light on the inequities and lack of transparency surrounding the 340B Drug Pricing Program. This federal initiative was designed to provide medications at reduced prices to low-income patients, but it has been manipulated by large healthcare entities to generate billions in profits with minimal oversight. As a result, the program’s intended beneficiaries—low-income patients in Colorado—are often forced to pay full price for medications they cannot afford.
In this episode, NCL’s CEO Sally Greenberg is joined by Amy Hinojosa, President and CEO of MANA, a National Latina Organization, and founding member of the Health Equity Collaborative, and Dr. Ge Bai, an expert on healthcare accounting, finance, and policy at Johns Hopkins University about the shocking lack of transparency around a program that has more than doubled in cost to taxpayers reaching more than $120 Billion in 2022. Both experts emphasize the importance of accountability to ensure that the 340B program truly benefits those it was designed to serve.
“The 340B program was created as a ‘buy-low-sell-low’ initiative. But over the years, it has evolved into a ‘buy-low-sell-high’ program,” said Dr. Ge Bai. “Hospitals can still buy drugs at a low price, but when they sell those drugs, they do so at full price—without any discount. This allows hospitals to reap substantial profits from the difference between the discounted purchase price and the high selling price.”
The episode also discusses the bipartisan 340B ACCESS Act (HR 8574), proposed legislation aimed at restoring transparency and accountability to this critical healthcare program.
The 340B Access Act (HR 8574) seeks to:
- Ensure that discounts directly reduce patient costs
- Modernize contract pharmacy arrangements
- Strengthen eligibility requirements
- Implement public reporting measures
- Prevent abuse by middlemen
“Entering this new legislative session, there is a real opportunity to leverage bipartisan support and push the 340B ACCESS Act across the finish line,” said NCL CEO Sally Greenberg. “The bottom line is that this program needs stronger guardrails to ensure that everyday Americans—especially those in underserved communities—have access to affordable medications.”
Additional Resources:
- National Consumers League: Medical Debt Issue Brief
- Health Equity Collaborative: The State of U.S. Charity Care: Solutions to Improve the Patient Experiences and Achieve More Equitable Health Outcomes
- Dr. Ge Bai, PhD, CPA, Johns Hopkins University: Estimation of Tax Benefit of US Nonprofit Hospitals
- Dr. Ge Bai, PhD, CPA, Johns Hopkins University: Do Nonprofit Hospitals Deserve Their Tax Exemption?
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About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.
