In New Mexico, where 25% of residents live at or below the federal poverty level and one-third reside in rural areas, access to affordable care is critical. Yet, House Bill 78, which proposes expanding the 340B Drug Pricing Program, raises significant concerns.
The 340B program was created in 1992 to help underserved communities by providing discounted medications, but evidence shows it has drifted far from its mission:
- Growth in Wealthier Areas: 60% of 340B sites are in higher-income areas, with program expansion favoring high-income neighborhoods (+5%) while declining in low-income areas (-5.6%).
- Higher Costs Without Benefits: Medicaid spending increased by $32 billion annually (2014–2021) due to 340B growth, yet disparities in care persist. Prescription costs at 340B entities are 150% higher for commercially insured patients.
- Minimal Charity Care: In New Mexico, the charity care rate is just 1.7%, below the national average of 2.5%, while 340B earnings outpace charity spending 4:1.
Expanding the program without addressing these issues will perpetuate inefficiencies, harm local providers, and fail to serve New Mexico’s vulnerable populations.
It’s time to focus on transparency, accountability, and reforms that ensure 340B delivers on its original purpose: improving access and health equity for underserved communities.
Read the joint letter from 10+ patient and provider advocacy organizations to learn more about why reform is essential for New Mexico.