Experts Warn GOP: Don't Side With Hospital Lobby Over Trump 340B Reforms

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WASHINGTON, D.C. / ACCESS Newswire / May 8, 2026 / The Hospital Accountability Project convened a roundtable of leading health policy experts this week to examine abuse in the federal 340B Drug Pricing Program and the urgent need for reform.

"President Trump is pushing a reform that could prevent billions in waste, fraud, and abuse," said West Cuthbert of American Resolve Action, who moderated the May 5 roundtable discussion. "The administration is trying to bring transparency to a program that has grown far beyond its original purpose. Congress must stand with the administration -- not undermine that effort."

Created by Congress in 1992 to help safety-net providers serve vulnerable patients, the 340B program allows hospitals to purchase drugs at steep discounts. Today, thousands of hospitals participate, including many which exist outside of the underserved or rural communities the program was designed to support. These tax-exempt hospitals generate tens of billions of dollars annually in discounted drug purchases. Federal law does not require hospitals to pass those savings on to patients. That enables many to retain the difference as revenue.

Panelists -- including experts from the Paragon Health Institute, America First Policy Institute, Manhattan Institute, Cicero Institute, Mackinac Center, American Resolve Action, and Alliance Defending Freedom -- warned that this lack of transparency has fueled rapid growth and created incentives for abuse, but pointed to the Trump administration's proposed rebate pilot as a critical solution. The model would place reasonable standards on hospitals to demonstrate that prescriptions qualify for 340B before receiving discounts. At present, hospitals receive discounts upfront, with little oversight of whether those discounts are being used to benefit low-income or uninsured patients.

The roundtable emphasized that the 340B program's unchecked growth is distorting healthcare markets, incentivizing hospital consolidation, and driving up drug prices -- all while failing to ensure that benefits reach low-income patients. Without reform, they warned, the program will continue to divert benefits away from the populations that need it most and continue to bolster the profit margins of tax-exempt hospital systems.

Speakers cautioned that hospital lobbyists are pressing Congress to block or defund the pilot before it begins. Doing so would preserve a system that drives up costs for patients, employers, and taxpayers while enriching hospitals.

"The current system operates as a black box," Cuthbert added. "If hospitals are confident they're following the rules, they should welcome transparency -- not fight it."

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For more information or to schedule an interview, please contact the Hospital Accountability Project at [email protected].

About the Hospital Accountability Project

The Hospital Accountability Project is a project of American Resolve Action. American Resolve Action (ARA) is committed to a future grounded in the values on which our nation was founded. We advance these ideals through direct engagement, advocacy, and stakeholder mobilization - working alongside leaders across the country who believe America thrives when it rewards opportunity, fosters innovation, and protects freedom.

The Hospital Accountability Project is committed to advancing policies that root out rampant waste, fraud, and abuse in the 340B hospital markup program and restoring a vital safety net for low-income and uninsured patients. Learn more at hospitalaccountabilityproject.org and see a brief video here.

SOURCE: Hospital Accountability Project