The 340B program was created to help expand access to discounted medicines for vulnerable patients. Instead, large tax-exempt hospitals are capturing billions of dollars in profit from the program at the expense of patients by marking up the cost of medicines drastically.
340B hospitals purchase medicines at considerably reduced prices and then mark up the cost, billing patients at full price or more while pocketing the difference. What's worse is that as 340B hospitals profit from the program, and patients are being left behind.
Texas policymakers must ensure discounts on medicines are reaching the low-income and uninsured patients they're meant to help.
Join us today and send a letter to your state lawmakers urging them to stop letting big, tax-exempt hospitals cash in on the 340B hospital markup program at the expense of vulnerable patients.
Dear Texas Legislators,
As your constituent, I urge you to oppose HB 3265, legislation that would allow the federal 340B program to continue expanding unchecked in Texas.
Big tax-exempt hospitals are using the 340B program to buy medicines at deeply discounted rates and charging markups on these medicines, which can be as high as 7x or more, profiting significantly in the progress. Profit margins for hospitals on 340B drugs dispensed are over three times larger than those of non-340B drugs. What's worse is there is scarce evidence any of that money is used to lower patient costs.
There are no requirements that 340B hospitals must share the 340B discounts with patients or report their profits from the program. Instead, 340B hospitals are keeping the discounts as profit, enriching themselves and leaving behind the low-income and uninsured patients the program was originally intended to support.
Allowing the 340B hospital markup program to continue growing larger with no transparency or accountability measures would only continue allowing 340B hospitals, pharmacy benefit managers (PBMs) and national, for-profit chain pharmacies they work with to continue siphoning profits from the program.
I urge you to oppose HB 3265 and ensure 340B hospitals are not empowered to continue abusing the program for profit and marking up the cost of medications at the expense of us all.
Thank you for your leadership and attention on this critical patient issue.
Sincerely,
