ADAP Advocacy has released a comprehensive policy paper critiquing the 340B Drug Pricing Program, comparing its current oversight structure to the regulatory environment preceding the 2008 financial crisis. The report, titled ‘Is the 340B Drug Pricing Program the Next ‘Too Big to Fail’?’, raises significant concerns about the program’s lack of meaningful accountability standards.
The 340B Program, the nation’s second-largest federally sponsored drug program after Medicare Part D, has experienced explosive growth without corresponding increases in transparency and oversight. ADAP Advocacy argues that the Health Resources Service Administration (HRSA) has been ineffective in addressing critical program deficiencies.
Brandon M. Macsata, CEO of ADAP Advocacy, drew sharp parallels between HRSA’s current approach and the Securities & Exchange Commission’s pre-2008 financial crisis regulatory stance. He highlighted HRSA’s slow response to issues such as duplicative Medicaid discounts and drug diversion by contract pharmacies.
The organization’s analysis suggests that the program’s current trajectory could potentially undermine its fundamental purpose of supporting patients. Marcus J. Hopkins, ADAP Advocacy’s 340B Consultant, emphasized the critical connection between program integrity and patient care, noting concerns about declining charity care and increasing medical debt among patients served by large hospital systems.
Guy Anthony, Chair of the 340B Patient Advisory Committee, stressed the urgent need for decisive action, arguing that the program’s extensive impact on the healthcare system demands comprehensive reform. The report calls for enhanced reporting requirements and stronger accountability mechanisms to prevent potential systemic failures.
By drawing explicit comparisons to the 2008 financial crisis, ADAP Advocacy aims to underscore the potential long-term consequences of insufficient oversight in a critical healthcare program. The policy paper serves as a comprehensive critique and a call to action for policymakers and healthcare administrators to implement meaningful reforms.
This news story relied on a press release distributed by 24-7 Press Release. Blockchain Registration, Verification & Enhancement provided by NewsRamp™. The source URL for this press release is ADAP Advocacy Warns of Systemic Risks in 340B Drug Pricing Program.