Buddy Carter, representative for Georgia’s 1st Congressional District, said on May 18 that the 340B Drug Pricing Program has been expanded beyond its original intent and called for reforms.
“The 340B program has been exploited into something it was never intended to be. It needs to be reformed,” Carter said in a social media post.
The 340B program was established to allow eligible hospitals and federal grantees to purchase outpatient drugs at discounted prices in order to stretch limited federal resources and expand patient services, according to the Health Resources and Services Administration.
In calendar year 2024, covered entities purchased $81.4 billion in outpatient drugs through the program, reflecting the scale of discounted drug purchasing now moving through the federal framework. Between 2013 and 2023, the number of covered entity sites participating in the program more than doubled, increasing its reach but also raising oversight questions around eligibility, compliance, and distribution of discounted drugs through related arrangements, according to the Government Accountability Office (GAO).
A federal review of 55 covered entities found that 30 reported providing discounts on 340B drugs to low-income, uninsured patients at some or all contract pharmacies. Contract pharmacy arrangements can increase access points for prescriptions while also creating compliance risks when pharmacies serve both eligible patients and the general public.
Buddy Carter is serving his sixth term and also serves on the House Energy and Commerce Committee and the House Budget Committee. He is a pharmacist by profession, graduated from the University of Georgia with a Bachelor of Science in Pharmacy, and represents Georgia’s First District.
