Millions of Americans worry about the high costs of life-saving prescription drugs. That’s why 25 years ago, Congress created the 340B Drug Pricing Program to help hospitals expand access to prescription drugs and support essential services for our most vulnerable patients.

The program constitutes less than 3% of the more than $450 billion in U.S. annual drug purchases. Because it is funded by drug manufacturer discounts, not federal dollars, it doesn’t cost the government or taxpayers one penny – but it makes a big difference to patients.

We’re deeply disappointed in the Centers for Medicare & Medicaid Services’ recent decision to cut payments to hospitals participating in 340B that will put needed prescription drugs further out of reach, and dramatically threaten access to health care for many, including the uninsured, the elderly, those with chronic conditions and the disabled.

Contrary to the Administration’s claims, this policy change does nothing to address the stated goal of reducing the cost of pharmaceuticals, and would actually cause increases in some Medicare beneficiaries’ out-of-pocket costs.

We led the effort to circulate letters signed by a majority of both houses of Congress calling on the Administration to reconsider this policy and recognize the need for the 340B program to continue at full strength. CMS’ decision goes against the will of the Congress, and Congress must intervene to rein them in. We look forward to working with Congress to address this issue. Stay tuned for further updates.

The AHA will also be leading a coalition of other hospital groups and members to pursue litigation to prevent these draconian cuts to payments for 340B drugs from taking effect. We’ve heard from you, our members, how vital the 340B program is – and we’ll do whatever we can to defend it.

Please join our fight and contact your members of Congress and urge them to support 340B. This program must be protected so that hospitals can continue to provide quality care and services for the neediest patients.

Related News Articles

Perspective
Public
In December 2024, Army 2nd Lt. Regina Benson celebrated her 105th birthday. At the time of her passing the following month, she was America’s oldest military…
Headline
The House May 22 passed the fiscal year 2025 budget reconciliation bill, the One Big Beautiful Bill Act by a 215-214 vote. The legislation includes significant…
Headline
The Centers for Medicare & Medicaid Services May 21 announced it will immediately begin annual audits of all Medicare Advantage plans and work to clear a…
Headline
The AHA May 21 voiced support to Senate and House sponsors of the Improving Seniors’ Timely Access to Care Act, legislation that would reduce the variation in…
Headline
The Department of Health and Human Services May 20 announced it has identified specific pricing targets for pharmaceutical manufacturers to meet to satisfy…
Headline
As Congress weighs significant changes and cuts to Medicaid, the AHA today hosted a Capitol Hill briefing for congressional staff featuring hospital and health…