ACP calls for reform of 340B Drug Pricing Program to improve patient access and oversight
The American College of Physicians (ACP) is calling for reforms to the 340B Drug Pricing Program, saying changes are needed to improve patient outcomes, strengthen oversight, and reduce profit-driven practices that may divert benefits away from vulnerable populations.
The policy was outlined in a new brief titled “Reforming 340B to Promote Program Integrity and Better Serve Vulnerable Populations,” published in Annals of Internal Medicine. The ACP argues that while the program plays an important role in expanding access to medications for low-income and uninsured patients, its structure has created gaps that require urgent policy correction.
The 340B Drug Pricing Program allows eligible healthcare organizations serving underserved populations to purchase prescription drugs at significantly discounted prices. It was designed to stretch federal resources and expand care access, but ACP notes that implementation challenges have led to unintended financial incentives within some participating systems.
Concerns over program use and oversight gaps
According to ACP, some healthcare organizations may be using 340B savings in ways that do not directly benefit the intended patient populations. The policy brief highlights concerns such as expanding services in higher-income areas while still benefiting from discounted drug pricing intended for low-income care settings.
The organization argues that such practices risk weakening the program’s original intent, which is to improve access for medically underserved patients. ACP recommends that benefits generated through the program should be reinvested directly into services that support eligible patient populations.
It also suggests that organizations failing to meet program expectations or demonstrate clear patient benefits should face potential removal from eligibility.
Calls for stronger regulation and accountability
ACP supports the continued use of contract pharmacies as part of the 340B system, stating they help improve access to discounted medications. However, the group also calls for stronger oversight, auditing, and regulatory scrutiny to ensure these arrangements do not create unintended financial pressures or reduce transparency.
The policy further recommends that federal regulators be given clearer authority and adequate resources to monitor all participants in the program effectively.
ACP leadership emphasized the urgency of addressing drug affordability in the United States, noting that high medication costs continue to force some patients to skip doses or avoid filling prescriptions.
The organization says reforming the 340B program is essential to ensuring it continues to support safety-net providers while maintaining accountability and aligning benefits with its original mision.
