John,

The Congressional Budget Office (CBO) has confirmed what Citizens Against Government Waste has been warning about for more than a decade: the 340B drug discount program is being abused, and it is driving up costs for taxpayers.

The 340B drug discount program was created in 1992 to help federally funded clinics and public hospitals in areas with large uninsured populations cover the cost of drugs and give discounts to patients, but it is has exploded far beyond its original intent.

The CBO report also stated that 340B “encourages behavior – including the prescription of more and higher-priced drugs, the expansion of services, and the integration of hospitals and off-site clinics- that tend to increase federal spending.”

And instead of using those taxpayer-subsidized savings to help low-income patients, large hospitals and contract pharmacies are pocketing the profits, siphoning millions of dollars away from the communities Congress meant to help.

John, this is exactly the “reverse Robin Hood scheme” about which CAGW has been sounding the alarm — taking from the poor and giving to the rich.

Now that the CBO has confirmed these abuses, it’s time for Congress to act.

That’s why we need you to add your voice to our urgent survey on 340B reforms.

John, do you think Congress should:

✔ Establish a clear definition of an eligible patient?
✔ Provide better verification of patient eligibility when a prescription is filled?
✔ Determine a relationship between the patient and the covered 340B entity?
✔ Verify that services were provided within the last 12 months?  
✔ Increase program transparency?

Then take CAGW’s 340B Reform Survey today and help us reform this program.

Your input will help us prove that American taxpayers want real change to stop the waste and abuse of this federal program.

John, thank you for standing with us in this fight to protect vulnerable patients and safeguard taxpayer dollars.

Together, we can restore the 340B program to its original mission.

Thomas Schatz
President
Citizens Against Government Waste

P.S. If you haven’t yet, please take our quick survey about 340B reform priorities.

Now that the CBO has confirmed what we’ve been saying for more than a decade, your voice matters more than ever.

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Washington, DC 20002

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