California Health Professional Student Alliance (CaHPSA)

Medical debt is a problem that is pervasive in America, with roughly 1 in 12 adults facing medical debt culminating to $220 billion totally. Low-income and uninsured adults are more likely to face medical debt and research has found that unaffordable drugs play a key role in exacerbating health costs. To help address this issue, the federal government has instituted a program called the 340B Drug Pricing Program that allows eligible hospitals and clinics serving low-income and uninsured populations to purchase prescription drugs from pharmaceuticals at heavily discounted prices, with the intention of passing on savings to the vulnerable populations they serve. However, lack of regulation and oversight of this program makes it difficult to assess the impact of this program and makes it easy for pharmaceuticals and hospitals to not pass on savings to consumers, exacerbating medical costs for their patients. This proposal aims to increase transparency surrounding the 340B program by requiring hospitals to publicly report costs and savings in relation to the 340B program, and also enforce compliance of this program by eligible pharmaceuticals. Through these means, policymakers can better analyze the benefits of the 340B program and ensure funds are being used appropriately to reduce healthcare costs for the low-income and uninsured populations they serve.