HUDDLE #TRENDS

How the 340B Program Became a Profit Engine

The 340B Drug Pricing Program was created to help safety-net hospitals stretch their resources and provide medications to low-income and uninsured patients. But today, it’s a multi-billion-dollar profit center for hospitals, retail pharmacies, and PBMs—often with little evidence that patients are benefiting.

In this Huddle #Trends report, I break down:

• How 340B works: A look at the money flow, key players, and the loopholes hospitals exploit.

• Who’s really benefiting: Hospitals rake in billions, contract pharmacies take their cut, and patients? They still pay full price.

• The evidence of misuse: Studies show 340B participation doesn’t increase uncompensated care, but instead fuels hospital expansion into wealthier areas.

• The legal and policy battles: Drug manufacturers are suing, states are fighting back, and Congress is under pressure to fix the system.

• The future of 340B: What reform might look like and how policymakers could realign the program with its original mission.

340B started as a safety net. Now, it’s a profit machine. Is reform inevitable?

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