National Survey Shows a Vast Majority of Americans Want Comprehensive Reform of the 340B Drug Pricing Program

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Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829  

National Poll Demonstrates Strong Support for Policies That Ensure Qualifying Patients Benefit Directly From 340B Drug Discounts, Hold 340B Hospitals & Covered Entities Accountable

Washington, DC – Today, the National Consumers League (NCL) released results from a new Morning Consult national poll of more than 10,000 American adults, revealing overwhelming concern about the burden of medical debt and strong public demand for comprehensive reforms of the 340B Drug Pricing Program. Nearly four in five surveyed adults (78%) support establishing requirements to ensure that qualifying patients directly benefit from 340B drug discounts through reduced out-of-pocket prescription drug costs. More than three in four surveyed adults (77%) believe hospitals should be required to pass 340B savings directly onto patients.

The national poll also found that:

  • 54% of surveyed adults currently have or previously had medical debt, with those in rural areas and the South disproportionately affected. Among adults who have experienced medical debt, more than half (54%) reported skipping additional needed medical care due to cost.
  • Three in four surveyed adults (76%) expressed concern that hospitals benefiting from 340B drug discounts often pursue aggressive debt collection practices against patients.
  • A majority of polled adults strongly supported proposed reforms of the 340B program, including policies to ensure qualifying patients benefit directly from 340B through reduced out-of-pocket costs, allow audits on how hospitals and pharmacies are using the 340B program, and add a requirement that 340B hospitals share a portion of the savings they generate with qualifying 340B patients.

“The 340B program is supposed to help vulnerable patients access and afford life-saving medicines and care, but the evidence shows some hospitals, the pharmacies they contract with, and middlemen are abusing 340B for profit at the expense of low-income and uninsured patients,” said National Consumers League (NCL) CEO Sally Greenberg, JD. “Americans have said loud and clear: They want a 340B program that puts patients first, not profits. Congress must act now to institute comprehensive reforms that restore integrity and accountability to 340B before more patients are left behind.”

The 340B Drug Pricing Program allows hospitals and other covered healthcare entities to access medications at discounted prices from manufacturers with the intent that they pass savings onto patients. However, over time, some hospitals, the pharmacies they contract with, and pharmacy benefit managers (PBMs) have manipulated the program into a major profit-generating enterprise. In many cases, 340B hospitals charge patients full price for discounted drugs, keep the difference as profit, provide minimal levels of charity care, and pursue aggressive debt collection practices against the very patients the program was meant to protect.

This April, Senator Bill Cassidy, M.D. (R-LA), the Chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, released a report detailing finds from a multi-year investigation of how covered entities abuse the 340B program. In the report, Sen. Cassidy outlined reforms meant to bring greater transparency to the 340B program, including requiring annual reporting on how 340B revenue is used to ensure direct savings for patients and providing clear guidelines to ensure that drug discounts actually benefit 340B-eligible patients.

By the Numbers: 340B Program Abuses Harm American Patients

  • Massive Price Markups. Medicine price markups are 6.6 times higher at 340B hospitals than at independent clinics, and research shows participation in 340B does not improve health outcomes for uninsured and low-income patients.
  • Declining Charity Care. 340B has grown exponentially to become the second largest federal prescription drug program after Medicare Part D. However, only $1 is invested in charity care for every $10 in profit collected by profitable 340B hospitals.
  • Lack of Transparency. Discounted purchases under 340B totaled a massive $66.3 billion in 2023. However, hospitals are not required to disclose their 340B profits or even whether their revenue is used to lower patient costs.

To learn more about the 340B Drug Pricing Program and the need for federal reforms of the program, visit: https://nclnet.org/340b-program/.

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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.