ADAP Advocacy Urges CMS Oversight to Reform the 340B Drug Pricing Program

GTTP

ADAP Advocacy seeks to move 340B oversight from HRSA to CMS to improve regulatory enforcement.
The 340B program has reached $100 billion in annual sales, yet lacks consistent transparency requirements.
Research shows that many 340B hospitals reduced charity care spending despite enjoying massive program revenues.
The push aims to realign the program with its original legislative purpose of supporting underserved patient populations.

Impact - Why it Matters

This proposal marks a pivotal challenge to the status quo of federal drug pricing. By demanding CMS oversight, advocates seek to transform a $100 billion program from a revenue generator for hospitals into a transparent, patient-centric resource, potentially reshaping how healthcare systems handle charity care and financial accountability.

Summary

ADAP Advocacy is calling for a structural shift in the oversight of the 340B Drug Pricing Program, proposing that authority be transferred from the Health Resources and Services Administration (HRSA) to the Centers for Medicare and Medicaid Services (CMS). Despite growing into the nation’s second-largest federal drug program, the organization argues that the initiative has strayed from its core legislative intent, increasingly prioritizing institutional financial gain over the needs of underserved patients.

In its recent policy paper, 340B Program: The Glue That Should Hold Our Healthcare System Together, ADAP Advocacy highlights a critical lack of transparency and enforcement. While 340B sales exceeded $100 billion in 2025, current regulations fail to ensure that revenue is adequately reinvested into patient care. Research indicates that many participating hospitals have actually decreased charity care spending, suggesting a fundamental disconnect between the program’s statutory requirements and modern hospital operational practices.

CEO Brandon M. Macsata emphasizes that CMS possesses the necessary regulatory expertise to hold stakeholders accountable and restore integrity to the system. By shifting oversight to a more robust enforcement body, ADAP Advocacy aims to curb unchecked growth and ensure that 340B savings are finally utilized to expand essential healthcare access for low-income and vulnerable populations across the United States.

ADAP Advocacy Urges CMS Oversight to Reform the 340B Drug Pricing Program

GTTP

ADAP Advocacy seeks to move 340B oversight from HRSA to CMS to improve regulatory enforcement.
The 340B program has reached $100 billion in annual sales, yet lacks consistent transparency requirements.
Research shows that many 340B hospitals reduced charity care spending despite enjoying massive program revenues.
The push aims to realign the program with its original legislative purpose of supporting underserved patient populations.