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340B Greed Costs Hard Working Americans

We represent hard working entrepreneurs, innovators, and creators. The 340B drug discount program (“340B”) is the perfect example of the dysfunction caused by corporate cronyism and backroom DC deal making. What started as a discount drug program for low-income Americans is instead lining the pockets of multi-billion-dollar health care corporations.

340B Abuse is Skyrocketing

Even though it remains largely unknown to everyday Americans, 340B is on track to become the largest government-run drug discount program in the U.S. by 2028, eclipsing Medicare Part D. It is already larger than Medicare Part B, Department of Defense medicine spending, and Medicaid.

 

There are $54 billion in discounted drugs flowing through the program, but all those savings aren’t making their way to Americans who need financial help.

 

Small Businesses Are Paying the Price

Small businesses across the U.S. are in crisis, forced to choose between rising health care costs and laying off workers. Expanding 340B raises drug costs for patients and small businesses who pay for prescription drug coverage. A recent report showed 340B costs employers and their workers an estimated $5.2 billion in increased health care costs each year.

 

340B has grown to such an extent that it inadvertently contributes to market distortions impacting that not only burdens state budgets but also places an undue financial strain on individuals with commercial insurance and, ultimately, the taxpayers themselves. A new report found that $3.9 billion in 340B health system profits came directly from seniors and taxpayers in 2022. 

 

 

340B is Now Under Investigation

It’s no surprised that 340B has attracted the attention of government watchdogs, U.S. Congress, and numerous investigative organizations.

 

Despite all this, some state lawmakers want to EXPAND the 340B program when they should be launching their own investigations and protecting taxpayers.

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