Adam Fein, President of Drug Channels Institute, has called for Congress to implement reforms ensuring that savings from the 340B program directly benefit patients. Fein made this statement on Drug Channels.
“The report concludes with five common sense suggestions for Congressional action: Requiring covered entities to provide detailed annual reporting on how 340B revenue is used to ensure direct savings for patients, providing a more transparent link between program savings and patient benefit,” said Fein.
According to the Government Accountability Office, the 340B Drug Pricing Program was established in 1992 to assist hospitals and clinics serving low-income patients by providing medications at reduced prices. However, concerns have arisen over time regarding insufficient oversight and whether these savings are effectively reaching patients. In recent years, both lawmakers and watchdog groups have advocated for greater transparency in the utilization of 340B funds.
The Health Resources and Services Administration (HRSA) reported that purchases by entities covered under the 340B program amounted to $38 billion in 2020. This marks a significant increase from $12 billion in 2015, indicating more than a 200% growth over five years. HRSA releases these figures to enhance transparency concerning the program’s scale and financial impact.
According to the San Francisco Chronicle, California Governor Gavin Newsom has proposed regulations requiring Pharmacy Benefit Managers (PBMs) to be licensed and disclose financial data. This initiative aims to improve transparency in PBM operations, which are often linked with escalating drug costs. By holding PBMs accountable, California seeks to address rising prescription prices.
Fein has served as President of Drug Channels Institute since March 2012, focusing on pharmaceutical economics and supply chain analysis. In January 2024, Drug Channels Institute was acquired by HMP Global, expanding its influence in healthcare insights and education. Fein continues to lead the organization from its headquarters in Philadelphia, Pennsylvania.
