Commentary: Stop abuse of federal program to lower drug prices
January 31, 2026
By Lee Newgent / For The Herald
Working families are feeling the squeeze. Health care costs keep climbing; wages aren’t keeping pace; and union health plans are under growing pressure to do more with less.
That’s why it’s worth taking a hard look at the federal 340B drug discount program.
340B is a federal program created to provide discounted prescription medications to low-income and underserved communities. This little-known program requires pharmaceutical manufacturers to sell drugs for as little as a penny to hospitals and clinics serving large numbers of uninsured and Medicaid patients.
It’s a laudable goal; one our members can support. We’re all about extending a helping hand to those in need.
What we can’t support is the Jekyll and Hyde transformation of this program. What was intended to serve the little guy has become a monster cash cow for large hospital systems, major pharmacy chains and the pharmacy benefit manager corporations that operate them. Profits they generate through the program have even become a major subject on their earnings calls with Wall Street.
This has happened because the program completely lacks transparency and accountability.