Scott LaGanga, Executive Vice President of State Advocacy for PhRMA, said state policymakers should address 340B program abuse and protect patients from pharmacy benefit managers pocketing billions in rebates. The statement was made on X.
“When it comes to health care, Americans often pay more for less” said LaGanga. “State policymakers can lead the way and must address 340B abuse and protect patients from PBMs pocketing billions in rebates. Government price-setting like MFN harms patients long term”
According to the U.S. Government Accountability Office, the 340B Drug Pricing Program was created in 1992 to help safety-net hospitals and clinics access discounted outpatient prescription drugs for low-income and uninsured patients. The program now includes thousands of providers, but government oversight and transparency regarding the use of program savings have been ongoing concerns. Calls for clearer accountability continue.
Drug Channels reported that total purchases through the 340B program reached $44 billion in 2021, increasing from $9 billion in 2014. This significant growth reflects the rapid expansion of the program among hospitals and clinics across the country. There are no federal requirements ensuring that 340B savings are directly passed on to patients.
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.
Scott LaGanga serves as Executive Vice President of State Advocacy at PhRMA, where he leads government affairs, public policy, and advocacy teams across all 50 states. He holds advanced degrees from George Washington University and Rutgers University and a bachelor’s from the University of Maryland. LaGanga’s work centers on advancing policies that support biopharmaceutical innovation and patient-focused care.
