The 340B program was created to help expand access to discounted medicines for vulnerable patients. Instead, large tax-exempt hospitals are capturing billions of dollars in profit from the program at the expense of patients by marking up the cost of medicines drastically.
340B hospitals purchase medicines at considerably reduced prices and then mark up the cost, billing patients at full price or more while pocketing the difference. What's worse is as 340B hospitals profit from the program, 73% of 340B hospitals in Colorado provide below-average charity care. For example, UCHealth devotes just 1.5% of its operating costs to charity care.
Colorado policymakers must ensure discounts on medicines are reaching the low-income patients they're meant to help.
Join us today and send a letter to your state lawmakers urging them to oppose Senate Bill 71 and stop letting big, tax-exempt hospitals cash in on the 340B hospital markup program at the expense of vulnerable patients.
Dear Legislator,
As your constituent, I urge you to oppose Senate Bill 71, legislation that would allow the federal 340B hospital markup program to continue expanding unchecked in Colorado.
The 340B program has turned into a profit center for hospitals and is raising costs for everyone. Large, tax-exempt hospitals are using the program to buy medicines at deeply discounted rates while marking up medicine prices for patients, profiting significantly in the progress. Profit margins for hospitals on 340B drugs dispensed are over three times larger than those of non-340B drugs. In addition, drug price markups can be 7 times higher at 340B hospitals than at independent clinics. What's worse is there is scarce evidence any of that money is used to lower patient costs. In Colorado, 73% of 340B hospitals provide less free and discounted care than the national average for all hospitals. For example, UCHealth devotes just 1.5% of its operating costs to charity care.
There are no requirements that 340B hospitals must share discounts with patients or report their profits from the program. Instead, 340B hospitals are keeping the discounts as profit, enriching themselves and leaving vulnerable patients behind.
Allowing the 340B hospital markup program to continue with no transparency or accountability measures would only continue allowing 340B hospitals to continue siphoning profits from the program.
I urge you to oppose Senate Bill 71 and ensure 340B hospitals are not empowered to continue abusing the program for profit and marking up the cost of medications at the expense of vulnerable Colorado patients.
Thank you for your leadership and attention on this critical patient issue.
Sincerely,
