Senate HELP chair Cassidy's report on 340B program underscores continued need for reform

Recent Council study showed drug pricing program driving up health care costs for employers, working families and taxpayers

WASHINGTON, DC – The American Benefits Council commended Senator Bill Cassidy (R-LA), chair of the U.S. Senate Health, Education, Labor and Pensions Committee, for his release of a report recommending reform of the 340B drug pricing program.

Earlier this year, the Council issued a paper explaining how employers, working families and taxpayers are shouldering a significant cost of the 340B drug pricing program’s expansion, while the program is failing to sufficiently benefit the vulnerable patients it was intended to serve.  

“The 340B program was originally designed to help low-income patients more easily afford prescription drug medicines,” said Ilyse Schuman, senior vice president, health and paid leave policy. “Instead, health systems are using the program in profit-driven ways and passing higher costs on to employers, families and taxpayers – but failing to assist the low-income patients in vulnerable communities the program was originally designed to help.

“Employers are deeply concerned about the significant cost that explosive growth of the 340B program has imposed on employer-sponsored health plans,” Schuman said. “We urge Congress to work with us on reforms to the 340B program that restore the program to its intent without raising costs for employers, employees and taxpayers.”

“We applaud Dr. Cassidy for his leadership on this issue and look forward to working with him and his colleagues to bring much-needed reform to the 340B program,” Schuman said.

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