Fixing a Federal Medication Access Crisis

In a time when Americans were facing a critical affordable health care crisis, Congress created a program – the 340B Drug Pricing Program – as a remedy. It was life-changing for our low-income and uninsured neighbors — allowing certain hospitals to purchase drugs at steep discounts, with the expectation that these savings would be passed on to patients who needed it most. But nearly 30 years later, patients across the country are still in the midst of that affordable healthcare crisis, and the program isn’t providing nearly the amount of relief it was supposed to.

Over time, what was originally created to be a lifeline for patients in need has been diverted from its original purpose, with some participants focusing more on financial benefits rather than ensuring savings reach the patients.

The 340B Drug Pricing Program allows hospitals and other healthcare centers to purchase medications at significantly reduced prices, but, somewhere in the process, misses the step of enforcing that savings be extended to patients. A 2022 study revealed that less than 2% of patients received discounts on 340B drugs at drug providers contracted with 340B-covered entities.

Further, many 340B care centers are often located in wealthier areas, not the low-income neighborhoods the program was intended to serve. The disconnect between the program's original intent and its current operation is not just a financial concern but also an ethical one.

As the President and CEO of BioFlorida, I know the 340B Drug Pricing Program operating as designed is essential to advancing health outcomes through innovation — ensuring affordability of medications and spurring the creation of more life-saving drugs. In order to maintain the integrity of our life science industry, we must ensure that a 340B program created to save our most in-need neighbors serves its original purpose.

Now more than ever, we must prioritize returning the program back to its original intent, working to prioritize the health of patients. The recently introduced 340B ACCESS Act  — H.R. 8574 — aims to realign the program with its original mission. This bill would require savings be passed directly to the patients it was originally intended to serve.

I urge Congress to prioritize a solution by supporting the 340B Access Act — sending a message to all Americans that we will not allow our low-income neighbors to be overlooked or disadvantaged for the financial benefit of those who seek to exploit the system. It’s time we bring the program back to its purpose and ensure the right to relief for all.

Mark A. Glickman is the CEO and President of BioFlorida.