Chase Bearden, Executive Director of the Coalition of Texans with Disabilities (CTD), emphasized the importance of prioritizing patients in the 340B drug pricing program to prevent life-threatening consequences. This statement was made in a published opinion column.
“When a program meant to support low-income patients becomes a profit center, it’s not just unethical — it can be life-threatening,” said Bearden.
The 340B Drug Pricing Program, established by Congress in 1992, allows eligible healthcare organizations to purchase outpatient drugs at significantly reduced prices. According to the Association of American Medical Colleges (AAMC), this initiative supports safety-net hospitals and ensures access to essential medications and services for vulnerable populations.
According to Citizens Against Government Waste, the program has experienced significant growth, with sales reaching $44 billion in 2021, up from $9 billion in 2014. Critics argue that this rapid expansion has outpaced regulatory oversight, raising concerns about how participating entities use the savings. The organization warns that without reforms, the program’s original intent to support vulnerable patients could be undermined.
PhRMA reported that in New York, 113 hospitals participate in the 340B program, holding 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 raised concerns about the program’s effectiveness in reaching its intended beneficiaries within the state.
Bearden leads CTD, 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 is available at txdisabilities.org.
