The American Free Enterprise Chamber of Commerce has announced its support for Senator Bill Cassidy’s report opposing the 340B Drug Pricing Program, citing concerns over transparency and misuse by pharmacy benefit managers (PBMs). The announcement was made in a post on X.
The 340B Drug Pricing Program, established in 1992, aims to enable certain healthcare providers to purchase outpatient drugs at reduced prices. These savings are intended to support care for low-income and uninsured patients. The program is managed by the Health Resources and Services Administration.
Pharmacy benefit managers negotiate with drug manufacturers and health plans to determine which drugs are covered and at what cost. According to the Commonwealth Fund, their use of rebates, formularies, and spread pricing can increase total drug spending while reducing transparency. Critics argue that these practices financially benefit PBMs at the expense of consumers and independent pharmacies.
A report from PhRMA indicated that California’s 340B program has experienced significant growth, with hospitals in the state maintaining numerous partnerships with pharmacies. As of 2025, there are over 3,500 contracts between 340B hospitals and pharmacies in California, with approximately 40% involving out-of-state pharmacies. This trend has sparked discussions about the program’s alignment with its original intent.
The American Free Enterprise Chamber of Commerce was formed to counteract what it describes as government overreach and to promote policies supporting free-market principles. It positions itself as an advocate for economic freedom and growth amidst rising regulation and national debt. The organization emphasizes the importance of the private sector in ensuring upward mobility for future generations.
