The Taxpayers Protection Alliance announced on X that the 340B Drug Pricing Program is driving up taxpayer costs, including in New York, and urged Congress to take action to restore the program’s integrity.
According to the Congressional Budget Office (CBO), spending on 340B drugs rose from $6.6 billion in 2010 to $43.9 billion in 2021, reflecting an average growth of 19% per year. This rate of increase far exceeded overall prescription drug spending growth, underscoring how rapidly the program has expanded. The CBO also concluded that the structure of 340B reduces manufacturer rebates and shifts more costs onto federal healthcare programs, increasing taxpayer burdens.
As reported by Johnson & Johnson’s Policy Research group, much of the financial benefit of the 340B program is captured by large hospital systems, contract pharmacies, and pharmacy benefit managers instead of low-income patients. The report noted “widespread abuse and misuse” and emphasized that charity care provided by hospitals has declined even as their participation in 340B has surged. The analysis highlighted that without transparency requirements, it is nearly impossible to ensure that program discounts actually reach vulnerable patients.
PhRMA reported that 113 hospitals in New York participate in the 340B program, collectively holding over 6,000 contracts with pharmacies across the country. Just 24% of these pharmacies are located in medically underserved areas, and 86% of participating hospitals provide below-average charity care, prompting debate over whether the program is serving its intended populations.
As noted by the Taxpayers Protection Alliance, the nonprofit advocacy group is focused on fiscal responsibility, limited government, and transparency in public spending. It produces reports, commentary, and campaigns on issues such as healthcare, taxation, and government regulation. The group’s mission is to protect taxpayers by exposing waste, fraud, and abuse while advancing accountability in federal and state programs.
