Consumer Action for a Strong Economy (CASE) is urging the Minnesota Senate Commerce and Consumer Protection Committee to oppose Senate File 4365, saying the bill would expand the 340B drug pricing program without addressing concerns about transparency, accountability, or patient benefit.
The group said the legislation would strengthen protections for contract pharmacy arrangements and limit certain manufacturer distribution practices but does not demonstrate that savings from the program are reaching low-income patients.
CASE argued that the 340B program has expanded significantly beyond its original scope without sufficient oversight.
State data highlights the scale of the program’s growth.
Minnesota’s most recent transparency report found that covered entities generated at least $1.34 billion in net 340B revenue in calendar year 2024, more than double the $630 million reported in 2023. The report also noted the figure may be an undercount and does not detail how the revenue is used or the extent to which patients benefit, according to the Minnesota Department of Health.
Federal oversight has also faced challenges keeping pace with the program’s expansion.
A Government Accountability Office (GAO) report found the number of contract pharmacies affiliated with covered entities increased from about 1,300 in 2010 to nearly 20,000 in 2017. The review also found that only about half of surveyed entities reported offering discounts to low-income, uninsured patients at some or all contract pharmacy locations.
Additional research has examined potential cost impacts.
A study published in JAMA Health Forum found that new participation in the 340B program was associated with a 7.1% increase in commercial spending per episode for outpatient biologic oncology drugs, with spending rising by about $4,074 in the first year compared to non-340B hospitals.
Consumer Action for a Strong Economy describes itself as a nonprofit, nonpartisan advocacy organization focused on advancing consumer interests through free-market principles. The group regularly engages on policy issues related to healthcare, energy, trade, legal reform, and overall cost of living, according to its materials.
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