Hawaii Needs Real 340B Reform Before Expanding the Program

Hawaii has long been a leader in healthcare access, boasting the lowest healthcare costs in the nation and a low uninsured rate. However, the proposed Senate Bill 480 to expand the 340B Drug Pricing Program raises significant concerns.

Originally designed to help underserved communities access affordable medications, the 340B program has strayed from its mission—favoring wealthier areas, driving up healthcare costs, and failing to reinvest in charity care. In Hawaii, the charity care rate is just 0.6%, far below the national average, while 340B profits outpace charity spending by 12:1.

Key issues include:

• Growth in Wealthier Areas: 60% of 340B sites are in higher-income neighborhoods, with expansion declining in low-income areas.

• Higher Costs: Prescription costs at 340B entities are 150% higher for commercially insured patients.

• Minimal Reinvestment: Top 340B entities reinvest just $1 in charity care for every $10 in profit.

  
  

We must ensure that 340B works as originally intended—to improve access and health equity for Hawaii’s underserved communities. Expanding the program without addressing its flaws risks perpetuating inefficiencies and harming the very patients it was designed to help.

Read the joint letter from 10+ patient and provider advocacy organizations to learn why 340B reform is essential for Hawaii’s healthcare future.