Jessica Dobrinsky, Chief of Staff at the Cardinal Institute for West Virginia Policy, said patients “are unable to shop to capture these discounts,” leaving insurers and taxpayers with higher costs while hospitals profit. The statement was made in a LegalNewsline op-ed.
The 340 program is utilized by at least 128 New York hospitals participate in 340b, according to 340bHealth.
Established in 1992 and administered by the Health Resources and Services Administration (HRSA), the 340B Drug Pricing Program requires drug manufacturers to provide outpatient drugs to eligible healthcare organizations at significant discounts, allowing them to stretch limited federal resources to reach more patients and provide comprehensive services.
A 2023 Wall Street Journal investigation found that participating hospitals “often extend their 340B discounts to clinics in well-off communities, where they can charge privately insured patients more than those on Medicaid.” The report noted that the program “appears to be bolstering profits in well-off areas more than it is underwriting services in less-privileged neighborhoods.”
The Government Accountability Office (GAO) has warned that HRSA “lacks adequate mechanisms” to ensure program compliance and that many covered entities do not report how savings are used to benefit patients. GAO recommended expanded data collection and enforcement authority to prevent misuse of 340B revenues.
Jessica Dobrinsky is the Chief of Staff at the Cardinal Institute for West Virginia Policy, where she oversees operations, supports fundraising, and conducts research on state healthcare policy, including certificate-of-need laws. Her work has appeared in Forbes, The Spectator, Real Clear Markets, and The Washington Examiner.
