The 340B Program’s Impact on Employers
Overview
The National Alliance is dedicated to tackling the high costs of healthcare that employers and working families face, in part due to the exploitation of the 340B program.
The 340B program enables participating hospitals to purchase medications at significant discounts and sell them to plan sponsors at the prevailing rate, a “buy low, sell high” scheme that results in profits at the expense of working families. There is no guarantee that 340B profits are passed to vulnerable patients in local communities, while raising prices due to incentives for steep markups on medications, lost rebates, health system consolidation, and incentives to prescribe higher-cost drugs and fewer biosimilars.
To raise awareness of this issue, the National Alliance has launched an initiative that aims to enhance understanding of the 340B program effects on plan sponsors among our members, other stakeholders, and policymakers. Support is available to local affiliates in advocating for meaningful reforms at both the state and federal levels.
340B Employer Resources
Explore these additional resources for a deeper look at the 340B program’s impact on healthcare costs and reform initiatives.
National Alliance 340B One-Pager
This one-pager highlights how the 340B drug pricing program, originally aimed at aiding safety-net providers, has evolved into a cost-driving tool for corporate healthcare. It reveals 340B's growth into the second-largest federal drug program, often with limited benefits for the communities it was designed to support.
National Alliance CEO Shawn Gremminger Written Testimony to House Energy & Commerce Committee
In his testimony, National Alliance CEO Shawn Gremminger addresses the unchecked growth of the 340B program, highlighting its impact on commercial healthcare purchasers and advocating for reform. His statement provides historical context, discusses program expansion, and proposes oversight solutions.
National Alliance CEO Shawn Gremminger Interview on Relentless Health Value Podcast
In this two-part podcast, National Alliance CEO Shawn Gremminger delves into the evolution and impact of the 340B drug pricing program. Part one examines whether 340B fulfills its mission to aid underserved communities, while part two focuses on its broader implications for employers and commercial healthcare plans.
National Alliance CEO Shawn Gremminger Op-Ed in Medhealth Outlook
In this op-ed, Shawn Gremminger critiques the 340B program for its unintended consequences, highlighting how it drives up healthcare costs and encourages consolidation in the hospital sector. He calls for significant reform, urging policymakers to address pricing abuses and ensure that savings benefit patients and employers.
Pharmacy Benefit Management Misalignment: Vendor Engagement Template
As the pharmacy benefit management industry undergoes the most significant transformation in decades, employers are at the forefront of driving change. This vendor engagement template equips them with information to assist in evaluating and comparing PBM proposals.
