Bill Cassidy - Ranking Member of the Senate HELP Committee | Official U.S. Senate headshot
Bill Cassidy - Ranking Member of the Senate HELP Committee | Official U.S. Senate headshot
U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor and Pensions (HELP) Committee, is conducting an investigation into the use and revenue generation of the 340B Drug Pricing Program. As part of this investigation, Senator Cassidy is seeking information from major contract pharmacies.
The 340B Drug Pricing Program allows covered entities to distribute discounted drugs to patients. In 2010, the Health Resources and Services Administration (HRSA) issued guidance that allowed covered entities to contract with an unlimited number of pharmacies. This led to a significant increase in the number of participating pharmacy locations, from 789 in 2009 to 25,775 in 2022, representing a 3,166 percent increase.
The rapid growth in the use of contract pharmacies has raised concerns about the integrity of the 340B Program and whether patients are receiving its intended benefits. The Department of Health and Human Services (HHS) Office of Inspector General and other federal oversight bodies have questioned the program's effectiveness.
Contract pharmacies play a significant role in the 340B Program and can earn a substantial percentage of the total discounts. According to the Drug Channels Institute, contract pharmacies can earn between 25 to 35 percent of total 340B discounts.
To gain a better understanding of how major contract pharmacies generate revenue from the program and whether patients directly benefit from it, Senator Cassidy has requested information from CVS Health and Walgreens, the two largest 340B contract pharmacy participants.
The senator's objective is to ensure transparency and accountability within the 340B Program. By examining the revenue generation and distribution practices of major contract pharmacies, he hopes to shed light on whether the intended benefits of the program are reaching patients as intended.
For more information and to read the full letter to CVS Health and Walgreens, please visit the HELP Republicans website or follow them on Twitter at @GOPHELP.
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