Access to Medicine
Millions of at-risk patients are denied access to lifesaving medicines due to high drug costs, distribution failures, and a lack of transparency. Inadequate infrastructure, supply chain breakdowns, regulatory hurdles, and funding gaps disrupt medicine delivery to vulnerable communities. At the same time, unreasonably high prices and unchecked profits put essential treatments out of reach.
Federal drug programs, like the 340B program, further divert resources from underserved patients. These systemic failures demand policy reform, pricing accountability, and transparent distribution to ensure that all patients, not just the privileged, receive the care they need.
FAQ
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It means ensuring that lifesaving and life-extending drugs and vaccines are available to everyone, especially to those in at-risk communities. When people have access to the treatments they need, they can overcome illness and lead healthier, more productive lives.
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At-risk communities often face higher rates of disease and have fewer resources to cope with health challenges. Ensuring these communities can obtain essential medicines not only saves lives but also empowers them to break out of cycles of poverty and inequality.
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Many obstacles exist, including high drug costs, delays in funding and distribution, and systems that sometimes prioritize profit over patient care. These challenges can mean that lifesaving treatments take too long to reach the clinics serving those who need them most.
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The 340B program allows covered entities in underserved areas to buy discounted drugs and bill insurance at full price. The program aims to help covered entities provide care to underserved communities at no cost to the taxpayer by reinvesting the savings in community care.
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Covered entities refer to healthcare organizations enrolled in the 340B Program. General Acute Care Hospitals, Critical Access Hospitals, Disproportionate Share Hospitals, Disease Specific Federal Grantees, and Safety-Net Federal Grantees are just some facilities enrolled in the 340B program.
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Healthcare providers enrolled in the 340B program save an average of 25% to 50% on pharmaceutical purchases.
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Nationally, 340B hospitals are not required to report their savings or profits from the 340B program. Minnesota, Maine, and Washington are the only states that require annual reporting from covered entities.
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Covered Entities buy out-patient prescription drugs at a significant discount, which 340B contract pharmacies distribute to patients. 340B covered entities are not required to pass these discounts onto their patients, so insurance is often billed at a steep retail price, generating a windfall for the covered entities.
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Contract pharmacies work with 340B hospitals and clinics to provide 340B drugs to patients.
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Covered entities must be nonprofit hospitals that serve a large percentage of low-income Medicare and Medicaid patients. All patients can be served at 340B Covered Entities; however, many are unaware that they are participating in this program and pay the price.
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The Health Resources and Services Administration (HRSA) regulates and administers the 340B program.
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While 340B aims to provide affordable medications and support underserved communities, some large hospital systems exploit the program by opening clinics in wealthier areas and linking them to underserved facilities on paper. This practice raises questions about whether the program consistently benefits the populations it was designed to help.
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Covered entities profit from the 340B program by pocketing the difference between the price they pay for a drug and the inflated price they charge insurers and patients.
