Kasia Mulligan, national spokesperson for Patients Come First, said the 340B rebate pilot program introduces oversight and ensures drug savings directly benefit patients. The statement was made in an op-ed.
“The lack of transparency and accountability measures in the current discount model has enabled hospitals to pocket the discounts, intended for patients, and divert the savings to fund unrelated projects, such as infrastructure improvement,” said Mulligan. “So much that 83 percent of people support reforming the program to ensure those savings reach the patients who need them most. This rebate model provides the oversight that 340B has needed for decades, and nearly 80 percent of people agree it’s a powerful change to the status quo. Participating pharmaceutical companies are taking steps toward greater transparency, aiming to improve the patient healthcare experience and ensure cost savings reach those patients.”
Established in 1992 and administered by the Health Resources and Services Administration (HRSA), the 340B Drug Pricing Program was created to help healthcare providers stretch limited resources to serve vulnerable populations. It allows eligible entities to purchase outpatient drugs at reduced prices. These savings are intended to support access to care for low-income and uninsured patients.
A 2024 report by the National Alliance of Healthcare Purchaser Coalitions found that prices at large 340B hospitals were 35% higher on average for common outpatient services compared to non-340B hospitals. The study estimated that this pricing difference results in an added $36 billion annually in healthcare costs for employers. These findings were based on an analysis of commercial claims data from over 25 million American workers and their families.
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.
Kasia Mulligan is the national spokesperson for the consumer patient advocacy group, Patients Come First. The organization advocates for greater transparency, accountability, and patient-focused reforms in healthcare policy. Mulligan represents the group in public statements and written commentary on health system issues.
