The 340B Drug Pricing Program Saves Lives

Pharmaceutical companies are attempting to eliminate a federal program that costs taxpayers nothing and replace it with a system where everyone in America would be burdened with increased medical costs, higher taxes, and worse healthcare outcomes. All of this to pad the pockets of pharmaceutical executives and their shareholders.

What federal program could have pharmaceutical companies in an uproar? The 340B Drug Pricing Program.

The 340B Drug Pricing Program was created in 1992 and allows qualifying hospitals and clinics that serve low-income and uninsured patients to buy prescription drugs at a discount. The idea behind the program was to create a way for safety-net health care providers to offer life saving services to their patients without taxpayer funding.

Pharmaceutical companies agreed and enthusiastically signed onto this program because in return the government allowed them to participate in the Medicaid program - opening them up to an extremely lucrative, government funded, healthcare market.

To give you an example of how lucrative this arrangement has been, Medicaid paid out $80 billion in tax payer money to pharmaceutical companies for medications in 2022.

In contrast, the 340B Drug Pricing Program saved taxpayers $53.7 billion in pharmaceutical costs while providing life saving medications to people who would otherwise be unable to afford them. These costs would be transferred to tax payers if the 340B Drug Pricing Program was eliminated.

How Does the 340B Drug Pricing Program Work?

The 340B Drug Pricing Program is a very simple program in action.

Pharmaceutical companies sell qualifying medical facilities that serve low-income and uninsured patients’ medications at a 25% to 50% discounts. These clinics are then reimbursed the full amount by insurance companies and the proceeds from these transaction are then used to provide care for those who cannot afford lifesaving treatments.

Here is a very simple example of how the program works:

A low-income serving clinic purchases a lifesaving HIV Drug for $500 - which is 50% off the $1,000 monthly list price. That clinic can now provide this medication to a client with insurance and get reimbursed the full $1,000 list price. That $500 in proceeds is then used to provide life saving medical care for someone who cannot afford it for free.

All without costing taxpayers a dime.

The 340B program saves people’s lives every day, and pharmaceutical companies want to end it so they can provide more money for their executives and shareholders at the expense of vulnerable individuals who would suffer without this program.

How Does this Impact You?

If Pharmaceutical companies get their way and the 340B Drug Pricing Program is eliminated, everyone's taxes will increase and we would have worse healthcare outcomes overall.

The Federal Government would have to step in to provide these lifesaving medications. The pharmaceutical companies know that if the 340B Drug Pricing Program is eliminated they would still get paid for these medications, people need them to survive, and they would be able to charge more. This would lead to an increased burden on the government which means higher taxes for everyone.

On top of the costs, elimination of this program would lead to worse healthcare outcomes for individuals. Imagine your family member is diagnosed with cancer and they have maxed out their insurance and can no longer afford treatment. If they are receiving care through a 340B covered entity, they could continue to receive this life saving treatment at no cost.

Imagine a world where you had to be wealthy to afford lifesaving treatments, that is the world pharmaceutical companies are working toward by trying to eliminate the 340B Pricing Program.

How Can You Help Save Lives?

The best way you can make an impact is by reaching out to your local and federal representatives and telling them to leave the 340B Drug Pricing Program alone.

We need everyone to come together and tell pharmaceutical companies enough is enough, they have shifted plenty of taxpayer money into investors’ hands at the expense of people’s lives. Ending this program would exponentially increase the amount of taxpayer money going straight to company executives and investors.

The time to act is now - fill out the form below and let your representative know that the 340B Drug Pricing Program is important and saves lives.