Michelle Nyman, Deputy Vice President of Alliances & Public Affairs at the Pharmaceutical Research & Manufacturers of America (PhRMA), said that implementing the U.S. Department of Health & Human Services’ new 340B pilot program would restore the program’s focus on reducing drug costs. The statement was made on X.
“Implementation of the new U.S. Department of Health & Human Services 340B pilot program would get the 340B Drug Pricing Program back on track to lowering drug costs and increasing healthcare access for patients,” said Nyman, Deputy Vice President, Alliances & Public Affairs.
According to the Government Accountability Office, hospitals participating in the 340B program can reinvest savings into services such as medication assistance, expanded care access, and community outreach. However, there is no federal requirement for hospitals to report how they use 340B revenue. This lack of transparency has raised concerns over whether savings are consistently used to benefit low-income patients.
PhRMA reported that 68 hospitals in Pennsylvania participate in the 340B drug discount program, holding over 2,250 contracts with pharmacies nationwide. Only 29% of these contract pharmacies are located in medically underserved areas. Additionally, 88% of participating hospitals in the state provide charity care below the national average, raising questions about the program’s reach and impact.
A study published in 2024 by the National Library of Medicine found that the number of 340B contract pharmacy arrangements increased from 1,300 in 2010 to over 60,000 by 2022. The study raised concerns about how financial benefits are distributed, noting a lack of evidence that patients directly benefit from the savings. Researchers emphasized the need for greater transparency in financial flows.
According to the Federal Trade Commission, rebate agreements between pharmacy benefit managers (PBMs) and drug manufacturers may incentivize higher list prices for medications. The report also found that PBM pricing structures can reduce patient access by threatening the financial stability of smaller pharmacies.
Nyman leads engagement with health stakeholders to promote access, innovation, and public policy reforms. Her professional background includes strategic roles in advocacy, health communications, and biopharmaceutical policy.
