Chase Bearden, Executive Director of the Coalition of Texans with Disabilities (CTD), has called for a medication program in Texas that prioritizes patients. He cited extreme price markups by some hospitals under the 340B program in an op-ed.
“The numbers are staggering. One analysis found that some 340B hospitals are using the program to markup drug prices by as much as 700,” said Bearden. “Another revealed some are buying insulin for 10 cents per vial — then billing patients hundreds of dollars.”
According to the Government Accountability Office, the 340B program was established in 1992 to assist hospitals and clinics serving low-income patients by providing medications at discounted prices. Concerns have arisen over time regarding insufficient oversight and whether savings are consistently passed on to patients. In recent years, both lawmakers and watchdog groups have advocated for increased transparency in the use of 340B funds.
The Health Resources and Services Administration (HRSA) reported that purchases by 340B-covered entities amounted to $38 billion in 2020. This figure marks a significant increase from $12 billion in 2015, representing more than a 200% growth over five years. HRSA releases these data to offer transparency into the scale and financial impact of the program.
A report from PhRMA highlights substantial growth in California’s 340B program, with hospitals forming 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 prompted discussions about whether the program aligns with its original intent.
Bearden leads CTD, which is recognized as Texas’s largest and oldest member-driven cross-disability organization. Founded in 1978, CTD focuses on advocacy, public awareness, and policy change for Texans with disabilities. More information can be found at txdisabilities.org.
