Reid Porter, Senior Director of State Public Affairs for the Pharmaceutical Research and Manufacturers of America (PhRMA), has expressed concerns over the misuse of the 340B Drug Pricing Program by large providers and their partners. Porter advocates for congressional reform to ensure the program better serves patients. His comments were made in a blog post.
"Patients, taxpayers and employers are paying a hidden tax," said Porter. "Patients aren't benefiting. Patients are being pushed into more costly settings. It's time for Congress to fix 340B."
Congressional and regulatory scrutiny of the 340B Drug Pricing Program has increased since 2023, with lawmakers calling for greater transparency and expanded oversight. According to FierceHealthcare, the Senate Health, Education, Labor & Pensions Committee recently held hearings to examine how hospitals utilize 340B savings. Some senators have proposed new reporting requirements focusing on patient benefits and contract-pharmacy activities, highlighting federal concerns about the program's scale and accountability.
The 340B program currently encompasses tens of thousands of providers and offers billions in discounts. The Commonwealth Fund reports that covered entities purchased $66.3 billion in discounted drugs in 2023 through over 42,000 participating organizations and 53,000 care sites nationwide. Policymakers argue that this rapid growth necessitates stronger monitoring of savings usage and manufacturer participation.
Financial analyses reveal varying trends in charity care among 340B hospitals. Strategic Health Care reports that a review conducted in 2023 found that these hospitals provided lower average charity care compared to non-340B facilities while maintaining similar profit margins. This raises questions about whether the savings are reaching low-income patients.
Porter oversees state-level policy and communications on drug pricing and access at PhRMA. As reported by The Org, he joined PhRMA after holding communications leadership roles at the American Petroleum Institute and has been active in public affairs since 2011.
PhRMA is a Washington, D.C.–based trade association representing America's biopharmaceutical research companies. According to Ballotpedia, it was founded in 1958 and advocates for innovation-driven drug-pricing policies while opposing government price controls.
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