Cassidy. Photo: Bill Clark / CQ-Roll Call via Getty Images
Senate HELP Chair Bill Cassidy on Thursday released a long-awaited report on the 340B discount drug program that calls for new transparency measures and a focus on contract pharmacies.
Why it matters: Cassidy has been investigating 340B since 2023, and the report may signal that he's ready to advance legislative fixes.
What's inside: The Republican staff investigation asked for information from hospitals, federally qualified health centers, contract pharmacies and drugmakers on how they operate under the 340B program.
- Cassidy said he found that covered hospitals generated hundreds of millions in 340B savings but didn't pass on the discounts directly to patients.
- He also said that drug manufacturers increasingly contracted with for-profit pharmacies to dispense discounted drugs, and that efforts to limit the number of contract pharmacies used didn't lead to a meaningful decline in usage of the drugs.
Potential policy changes that Cassidy outlined mostly focus on providers and contract pharmacies, rather than drugmakers. Options include:
- Requiring covered entities to provide detailed annual reporting on how 340B revenue is used
- Investigating financial benefits for contract pharmacies and third-party administrators who use 340B, and requiring transparency and data reporting for these entities
- Examining legislative changes to the definition of eligible 340B patients and contract pharmacies' practices.
What they're saying: Cassidy last year told Axios that he wanted to work on returning the program "to the original intent" if he became HELP chair.
- In a statement on the report, Cassidy said the investigation "underscores that there are transparency and oversight concerns" and that "Congress needs to act to bring much-needed reform to the 340B Program."
