Curated News
By: NewsRamp Editorial Staff
July 27, 2026
ADAP Advocacy Calls for 340B Oversight Shift to CMS
TLDR
- Shifting 340B oversight to CMS could enable stricter enforcement, potentially reducing provider exploitation and increasing patient benefits.
- ADAP Advocacy proposes moving 340B program oversight from HRSA to CMS to address regulatory gaps and enforce reinvestment of drug savings.
- Reforming 340B oversight ensures that billions in drug savings actually help low-income and rural patients access affordable healthcare.
- Only 27 of 98 340B hospitals increased charity care after joining the program, while 41 reduced it by over 50%.
Impact - Why it Matters
This news matters because the 340B Drug Pricing Program affects the affordability and accessibility of prescription drugs for millions of low-income and underserved Americans. With $100 billion in annual sales and widespread lack of transparency, the program risks being exploited by hospitals and other covered entities that may not be using revenues to benefit patients. Moving oversight to CMS could enforce accountability, ensure that savings are reinvested into charity care, and ultimately protect patients who rely on the program for life-saving medications. For taxpayers and patients, this change could mean more efficient use of resources and better health outcomes.
Summary
ADAP Advocacy, a leading voice for the AIDS Drug Assistance Programs (ADAPs), has called for a major overhaul of the 340B Drug Pricing Program by shifting its oversight from the Health Resources and Services Administration (HRSA) to the Centers for Medicare and Medicaid Services (CMS). In a recent policy paper titled "340B Program: The Glue That Should Hold Our Healthcare System Together", the organization argues that the program has strayed from its original intent—helping low-income and underserved patients—by prioritizing provider interests over patient interests. The 340B Program, created in 1992 under P.L. 102-585, requires drug manufacturers to sell outpatient drugs at steep discounts to Covered Entities like disproportionate share hospitals and Ryan White HIV/AIDS Program (RWHAP) providers, with the condition that these entities reinvest the savings into patient care. However, ADAP Advocacy contends that HRSA has failed to enforce transparency and accountability for over three decades, leading to unchecked growth—with 340B drug sales hitting $100 billion in 2025, 79% from hospitals—and a lack of data on how revenues are spent.
Brandon M. Macsata, CEO of ADAP Advocacy, emphasized that HRSA has demonstrated an inability to ensure covered entities use 340B revenues in compliance with the law. Marcus J. Hopkins, Lead Health Policy Consultant, highlighted a "fundamental disconnect" between the statute's requirement to reinvest funds and the belief by many entities that they can use revenues without oversight. Research by ADAP Advocacy, examining 98 hospitals that reported charity care expenditures on federal Form 990s, found that only 27 of 340B hospitals increased charity care as a percentage of revenues after joining the program, while 41 hospitals saw decreases of 50% or more. Macsata argued that CMS has the regulatory and enforcement capacity to rein in bad actors, especially after hospital CEOs told Congress they would not comply with transparency standards. The shift to CMS, he believes, is essential for substantive change to ensure the program serves its intended purpose of expanding access to care for vulnerable patients.
Source Statement
This curated news summary relied on content disributed by 24-7 Press Release. Read the original source here, ADAP Advocacy Calls for 340B Oversight Shift to CMS
