New Report Highlights Dramatic Increase in 340B Drug Pricing Program, Raising Concerns for Underserved Communities

WASHINGTON, VA, UNITED STATES, May 22, 2025 /EINPresswire.com/ -- A new special report from the Health Equity Collaborative, a community of organizations committed to addressing the needs of underserved populations, calls attention to the dramatic expansion of the 340B Drug Pricing Program, raising critical concerns about its effectiveness in serving vulnerable communities.

The 340B program, designed to help safety-net hospitals and clinics provide discounted medications to low-income patients, has experienced exponential growth. New data from the Congressional Budget Office shows, from 2010 to 2021, 340B spending grew 19% annually, rising to 43.9 billion dollars in US spending.

"Our community is deeply concerned about the findings of this report," said Amy Hinojosa, HEC founding member and President and CEO of MANA, A National Latina Organization. "While the 340B program was created to ensure that our most vulnerable populations have access to affordable medications, its current trajectory raises serious questions about whether those goals are being met."

Also of concern is the growth of large contract pharmacies that profit from the program. Today, more than 33,000 distinct pharmacies are participating in the program and more than 50 cents of each $1 in profits contract pharmacies receive through the 340B program go to the four biggest pharmacy benefit manager companies.

"For communities already burdened poorer health conditions, the 340B program's shortcomings represent a significant threat," Hinojosa added. "We must ensure that this program is working effectively to reduce disparities, not exacerbate them."

The report also examined policy reforms Congress can pursue to address this growing issue. These include:

• Implementing stricter oversight and transparency requirements
• Clarifying eligibility requirements
• Strengthening compliance enforcement
• Ensuring patients benefit
• Limiting the use of 340B by certain entities
• Increasing data collection and public reporting

In April, the Senate Committee on Health Education Labor & Pensions (HELP), led by Senator Bill Cassidy, M.D. (R-LA), released a new report calling on Congress to bring needed reforms to the 340B Drug Pricing Program. The HELP Committee's report, which is reviewed in HEC’s new publication, is a positive step that Congress must continue to build on to fix this critical program.

The full HEC report, titled “Special Report: CBO Data Review Reveals Dramatic Increase in 340B Drug Pricing Program,” is available at https://healthequitycollaborative.org/wp-content/uploads/2025/05/May-2025-Special-Report.pdf

About The Health Equity Collaborative

The Health Equity Collaborative is a diverse community comprised of national, public health, patient advocacy, and multicultural organizations committed to supporting equity and combating disparities experienced by underserved communities.

Contact:
Amy Hinojosa
info@healthequitycollaborative.org

Amy Hinojosa
Health Equity Collaborative
email us here
Visit us on social media:
X