Chase Bearden, Executive Director of the Coalition of Texans with Disabilities, has raised concerns about the misuse of a federal drug discount program by some hospitals. In an op-ed, Bearden alleged that these hospitals are reselling essential medications at inflated prices to low-income patients.
“Some hospitals are buying life-saving medications for pennies, then charging low-income patients, including many with disabilities, hundreds of dollars for these drugs,” said Bearden. “They do it every day under a federal program meant to help uninsured and underserved patients access the care and medications they need. Instead, it’s become a money-making machine.”
The 340B Drug Pricing Program was established in 1992 to enable eligible healthcare providers to purchase outpatient drugs at reduced prices, with the aim of expanding services to vulnerable populations. However, according to the Government Accountability Office, the program has faced increasing criticism as hospitals and contract pharmacies have expanded their use of 340B contracts. Some believe this growth has diverted the program’s focus from its original mission.
According to the Wall Street Journal, hospitals participating in the 340B program can use drug savings to fund essential services such as medication assistance and outreach. However, many of these hospitals reportedly extend discounts to affluent areas where privately insured patients are billed more, raising concerns about potential misuse of the program. Critics argue that in some cases, the program may be supporting profits over public service.
PhRMA reported that in New York, 113 hospitals participate in the 340B program and hold over 6,000 contracts with pharmacies nationwide. However, only 24% of these contract pharmacies are located in medically underserved areas, and 86% of participating hospitals provide below-average levels of charity care. This disparity has prompted questions about the program’s effectiveness in reaching its intended beneficiaries within the state.
Bearden is affiliated with the Coalition of Texans with Disabilities (CTD), which is recognized as Texas’s largest and oldest member-driven cross-disability organization. Founded in 1978, CTD focuses on advocacy, public awareness, and policy change for Texans with disabilities. More information can be found at txdisabilities.org.
