Op-Ed: Protecting the Intent of the 340B Program for Our Communities – Healthcare is important to everyone, but it is especially important to veterans of the military who often have a lifetime of medical issues stemming from their service to our country.
Thankfully, there are tools to make healthcare more affordable. One such program is the 340B Drug Pricing Program, which was established by the federal government in 1992. It was designed with a noble intent: to allow eligible healthcare organizations to stretch scarce federal resources to serve low-income patients better. But unfortunately after 30 years, it has become clear that the true profiteers of this program are large corporations and Pharmacy Benefit Managers (PBMs) with no real connection to Illinois.
The 340B program requires drug manufacturers to provide outpatient drugs to eligible healthcare organizations at significantly reduced prices. The goal is simple: to expand access to medications for those who need it most. However, poor oversight and mismanagement have allowed large hospitals and PBMs to exploit this program, diverting the intended benefits away from the very populations they were meant to serve.
The statistics tell a troubling story. In 2010, the Health Resources & Services Administration (HRSA) expanded the program, allowing covered entities to contract with an unlimited number of third-party pharmacies to dispense 340B drugs. This has resulted in a staggering increase in contract pharmacies, from fewer than 1,300 locations in 2010 to nearly 28,000 by mid-2020. As of 2021, total sales of 340B-discounted drugs reached an estimated $44 billion, an increase of 127% over just five years. Hospitals accounted for 87% of these purchases in 2020.
What’s even more alarming is that many nonprofit hospitals are not fulfilling their end of the bargain. A recent report revealed that 72% of private nonprofit hospitals had a “fair share deficit,” meaning they provided less charity care than the tax breaks they received. This disparity is unacceptable, especially when patients are left unaware of the benefits a program like 340B should provide.
It is time for our lawmakers to take action to protect patients, especially those in vulnerable communities. We must ensure that the 340B program returns to its original intent, prioritizing those in need rather than enriching large corporations and PBMs. Specifically, lawmakers should implement the following reforms:
- Patient Choice: Prohibit PBMs from forcing patients toward their own mail-order pharmacies, ensuring that patients have real options for their medications.
- Community Protection: Safeguard Illinois communities from becoming Pharmacy Deserts, ensuring that everyone has access to necessary medications.
- Transparency and Accountability: Require detailed reporting to the Department of Insurance on how patient, plan sponsor, and taxpayer funds are utilized in the claims process.
- Prioritize Patients: Ensure that the benefits of the 340B program truly serve those who need it most, rather than lining the pockets of powerful corporations.
As a veteran, I understand the importance of community and the sacrifices many make to serve others. The status quo regarding the 340B program is not acceptable. It is my hope that the upcoming 340B hearings will pave the way for meaningful reform. We must honor the original intent of the program and prioritize the individuals and families who rely on it for their health and well-being.
In the end, it is not just about numbers and profits; it is about people – our families, our friends, and our community members. Let us work together to reclaim the spirit of the 340B program and ensure that it serves those who need it most.
Op-Ed: Protecting the Intent of the 340B Program for Our Communities
