We Work For Health, a coalition representing biotechnology, pharmaceutical and life sciences stakeholders, said June 9 that a small number of pharmacy benefit managers and pharmacy chains control a majority of 340B contract pharmacy relationships, calling for reforms to the federal drug pricing program.
The group’s Maryland chapter made the statement on its X account, citing a June 2 analysis by Drug Channels Institute that examined concentration trends in the 340B contract pharmacy market using Health Resources and Services Administration data.
"It's time for real 340B reform," We Work For Health Maryland said in its post.
The Drug Channels analysis found that five large pharmacy benefit managers and pharmacy chains account for 77% of 340B contract pharmacy relationships, underscoring the level of concentration within the system.
A separate study published in the American Journal of Managed Care found that 340B contract pharmacy participation has expanded sharply over time, with the share of retail pharmacies in a county dispensing 340B drugs rising from 1.5% in 2010 to 43.7% in 2021. Researchers said the growth correlated with higher Medicare and Medicaid enrollment in participating areas, reflecting the program’s expanding footprint in community pharmacy networks nationwide.
Health Resources and Services Administration data show covered entities purchased $81.4 billion in 340B drugs in 2024, a 23% increase from the prior year. Disproportionate share hospitals accounted for roughly 78% of those purchases, according to the agency, as overall program spending continued to rise alongside broader participation.
We Work For Health is a national coalition representing stakeholders in the biotechnology, pharmaceutical and life sciences sectors. The organization includes business leaders, employees, patient advocates and labor representatives who engage policymakers on issues related to health care innovation, access and economic impact.
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