Overview
- A bipartisan HELP Committee hearing questioned whether 340B benefits patients or chiefly boosts some hospital finances, with senators signaling support for targeted reforms.
- GAO told lawmakers that HRSA lacks the data to verify hospital eligibility and does not assess compliance with rules designed to prevent duplicate discounts.
- Participation has surged to more than 60,000 entities, and CBO analyses link program expansion to consolidation and higher spending through incentives to use costlier drugs.
- A Senate working group is advancing proposals on revenue transparency, funding HRSA audits, and limiting child‑site claims, with some members aiming for a committee bill by year‑end as others stress protecting rural and safety‑net providers.
- Industry responses diverged, with the Federation of American Hospitals noting taxpaying hospitals receive no 340B benefit and the American Hospital Association defending the program as a lifeline for nonprofit and rural facilities; the administration also plans to test a rebate model next year that drew skepticism at the hearing.