The Wall Street Journal today published a letter to the editor from AHA General Counsel Chad Golder responding to a May 7 editorial criticizing the 340B Drug Pricing Program. The letter states: 

“Your editorial praises a judicial opinion that misunderstands the 340B program. Far from a grift, 340B is one of the rare government programs that has made drugs more affordable for average Americans. Hospitals use 340B discounts to provide free or low-cost drugs to patients most in need. The law also requires drug companies to pay a steeper 340B discount when they raise the price of their drugs faster than inflation. This isn’t ‘sweet arbitrage’; it is a smart policy designed to deter drug companies from raising drug prices at exorbitant rates. 

“By establishing contract pharmacy relations, 340B hospitals ensure their patients get access to drugs closer to where they live, improving their medication adherence and ultimately their health. For many Americans, especially those who live in rural communities, these arrangements are the difference between driving hours to a 340B hospital or picking up a prescription at a local pharmacy. 

“Legislators across America — in both red and blue states — have enacted laws protecting these contract pharmacy relations. With healthcare affordability on everyone’s mind, policymakers should recognize 340B for what it is: a program that makes healthcare cheaper and more accessible for patients at no cost to the federal government.” 

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