NCL applauds Senator Cassidy’s effort to shine light on 340b program oversight and accountability

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

Washington, DC – The National Consumers League (NCL) applauds Senator Bill Cassidy, M.D. (R-LA), Ranking Member of the Senate Health, Education, Labor and Pensions (HELP) Committee, for releasing a new report exposing significant accountability gaps in the federal 340B drug discount program.    

“The 340B program was designed to help vulnerable patients afford life-saving medications—not to boost the bottom lines of large health systems or third-party contractors,” said Sally Greenberg, CEO of the National Consumers League. “Senator Cassidy’s report rightly calls for greater accountability, transparency, and reform. We urge Congress to act quickly so this critical program delivers on its promise to help the patients who need it most.”  

The report raises serious concerns about how hospitals, clinics, and pharmacies use 340B revenue—often with little transparency or direct benefit to low-income and uninsured patients. Key findings include:  

  • Large hospital systems report hundreds of millions in 340B revenue used for vague purposes like “capital improvements,” with no clear patient benefit.  
  • Federally Qualified Health Centers show inconsistent practices in delivering discounts to patients, despite a significant 340B income.  
  • Pharmacy chains like CVS and Walgreens impose rising fees on providers, making it harder to serve vulnerable patients.  
  • Drug manufacturers report misuse of discounts, including diversion to ineligible patients and duplicate discounts.  

Senator Cassidy proposes reforms to increase oversight, require annual reporting on 340B revenue use, and ensure patients—not intermediaries—benefit from the 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.