LOUISVILLE, Ky. — Federal lawmakers Thursday questioned whether the 340B drug discount program, a federal initiative meant to help hospitals serve low-income patients, is instead boosting hospital executives’ paychecks. 

The program, created in the 1990s, requires drugmakers to sell discounted medications to hospitals that serve low-income patients. Hospitals can then sell those drugs at higher prices, keeping the difference.

At a Senate Health, Education, Labor and Pensions (HELP) Committee hearing Thursday, senators questioned whether patients are benefiting from the program.

“It is clear participating providers benefit from 340B. The question is are patients and payers,” Sen. Bill Cassidy, R-Louisiana, said.

Multiple investigations have found some hospitals use the program to pad their bottom lines.

“We have some people that are 340B hospitals that are running super bowl ads and huge CEO salaries,” Sen. Jon Husted, R-Ohio, said.

The program does not require hospitals to pass along savings to patients or report where the money goes.

In Louisville, both Norton Healthcare and UofL Health participate. When asked if patients directly receive 340B discounts, UofL did not respond. Norton said it “continually reinvests in patient care,” but WDRB has not received further response.

Patients like Jessica Baladad said the program’s gaps have real-world consequences. In 2018, Baladad, was diagnosed with breast cancer and faced mounting medical bills.

“It cost me $20,000 to find out I had breast cancer at 33 years old,” Baladad said.

The hospital that read her biopsy results was out of network, and throughout treatment, the bills continued to pile up.

“You’re trying to fight this disease, and you’re trying to fight the healthcare system to be able to afford to live even if I do make it through cancer,” Baladad said.

At the hearing, multiple senators called for more oversight of the program and its finances.

“Perhaps we need to reform 340B and make sure patients are put first,” Sen. Cassidy said.

Democrats repeatedly emphasized the hearing occurred amid a government shutdown and warned that without renewed Affordable Care Act tax credits, millions could soon see healthcare costs surge.

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