TAPP Encourages 340B Reform, Based on Congressional Budget Office Report

The Congressional Budget Office (CBO) recently released a report examining the 340B Drug Pricing Program—a program originally designed to help low-income and vulnerable patients gain access to affordable medicines. The findings raise troubling questions about whether the program is delivering on its promise.

The report highlights that, instead of functioning solely as a safety net, the program has grown significantly over time. In many cases, hospitals are using it as a major revenue source. This expansion has had unintended consequences, including higher costs for patients and taxpayers, while some hospitals reap financial benefits without ensuring those savings are passed on to patients. That, the CBO points out, is far from the program’s original intent.

In response to these concerns, federal lawmakers have begun to act. U.S. Representatives Buddy Carter and Diana Harshbarger introduced the 340B Affording Care for Communities and Ensuring a Strong Safety-Net Act—or the 340B ACCESS Act. This legislation aims to reform the program so it better delivers on its promise of affordability and fairness for patients.

The bill proposes clearer rules for eligibility, transparency, and accountability for hospitals on how they use program savings. It would also protect patients by defining eligibility more precisely and ensuring affordability requirements are enforced. Crucially, the bill addresses the role of contract pharmacies and limits participation by for-profit entities to prevent exploitation of the program.

The 340B program should be focused squarely on patients and the communities it serves. These reforms are designed to restore that focus—ensuring the program delivers affordable access to medicines while protecting taxpayers. 

By strengthening oversight, improving transparency, and creating accountability, the 340B ACCESS Act represents an important step forward.

 For these reasons, TAPP applauds Reps. Carter and Harshbarger’s 340B Access Act and encourages its swift passage.