For-profit pharmacies and Pharmacy-Benefit Managers (PBMs) are profiting immensely from the 340B program, yet patients are not seeing any cost savings or support for patient services. The 340B Program is designed to allow safety-net hospitals and clinics to receive discounts on prescription drugs, with the intention that these savings be used to provide medication discounts and better care for patients, particularly those with low incomes. Unfortunately, the program is not always functioning as intended, and patients are not reaping the benefits. 

Instead, it is PBMs and their for-profit pharmacies who are benefiting. For instance, one for-profit pharmacy recently made $1.6 billion from the 340B program. Additionally, 26% of 340B contract pharmacies are located out of state, including as far away as Florida, profiting from a program meant to assist California’s vulnerable patients.

California's AB 1460 aims to expand the program, but it lacks a requirement for transparency on how clinics spend their 340B funds, which is necessary to ensure patients benefit from this program. Rather than expanding it, we should focus on ensuring that it truly benefits the people who need it most: the patients.