On June 23, the National Hispanic Council on Aging (NHCOA) hosted its Capitol Hill Briefing, “Centering Hispanic Communities in 340B: Strengthening Drug Discount Policy to Improve Access and Equity.” Moderated by NHCOA Advisor of Research and Resource Development, Christina Pacheco, this discussion brought together Jeanette Contreras, the Organization for Latino Health Advocacy (OLHA) Founder and Executive Director, and Thomas Johnson, Executive Director of ASAP 340B. With the guidance of these experts from the field, NHCOA was able to thoroughly explore how the 340B Drug Pricing Program can better fulfill its mission of expanding access to affordable medications and quality healthcare for underserved communities.
Ms. Pacheco opened the discussion by highlighting the importance of ensuring the 340B Program’s benefits reach the intended patients, amidst the program’s rapid growth. She noted that Hispanic older adults experience disproportionately higher rates of chronic conditions, including diabetes, asthma, cardiovascular disease, and cancer. That disparity makes affordable access to medications essential for improving health outcomes within the Hispanic community.
Building on that point, Ms. Contreras explained that although federally qualified health centers must report how they use their 340B savings, many participating hospital systems are not held to the same standards of transparency. Mr. Johnson added that, without stronger reporting requirements, it is difficult to determine whether program revenue is being reinvested in patient care or diverted to other institutional priorities.
Patients Should Benefit from Program Savings
A central message throughout the briefing was that depending on the participating institution, some communities do not see the financial benefits that the 340B program is intended to provide. Ms. Contreras emphasized that eligible patients should see lower prescription drug costs at the pharmacy rather than continuing to face high out-of-pocket expenses. She emphasized that the program has the potential to improve healthcare affordability if savings are directed toward those who need them most.
Mr. Johnson explained that, as the 340B Program currently exists, some healthcare entities retain the financial benefits from discounted drug purchases without passing the savings on to patients. He elaborated that in a bad-acting participating institution a cancer patient could be prescribed medication that hospital purchases through 340B at a discount, yet both Medicaid and the patient would still be charged significantly more. He stated that examples like this demonstrate why stronger oversight and clearer accountability measures are needed.
Recentering the discussion to health equity, Jeanette Contreras of OLHA explained that stronger accountability could allow 340B savings to fund services that improve patient outcomes directly. She highlighted investments such as bilingual health education, medical interpretation, community health workers, mobile health clinics, and chronic disease management programs as ways the program could better serve Latino communities.
Thomas Johnson from ASAP 340B also expressed concern about hospital consolidation and the expansion of contract pharmacies into wealthier communities rather than medically underserved neighborhoods. He argued that the program should prioritize improving access in areas with the greatest health disparities, where vulnerable patients rely most on safety-net providers.
Policy Solutions Moving Forward
Both panelists agreed that meaningful reforms are needed to restore the original purpose of the 340B program rather than replacing it.
Ms. Contreras advocated for providing the Health Resources and Services Administration (HRSA) with stronger oversight authority. She also highlighted the potential of reimbursement-based models to improve accountability and connect program savings more directly to patient care.
Mr. Johnson emphasized the importance of consistent reporting requirements for all participating entities. He proposed that healthcare providers clearly identify themselves as 340B participants such that patients may better understand the program and its intended benefits. He also stressed that increased transparency would enable policymakers to evaluate whether the program advances health equity and expands access to affordable care.
Input from the audience reinforced broad support for reforms that strengthen transparency, improve oversight, and ensure that 340B savings directly benefit patients. As the National Hispanic Council on Aging (NHCOA) continues to elevate the voices of Hispanic older adults in healthcare policy conversations, the organization remains committed to advancing solutions that improve access to affordable medications, reduce health disparities, and ensure that programs like the 340B Program fulfill their promise of serving the communities that they were created to support.
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