DC’s Biggest Liars: Thomas Schatz and Dan Crippen

Enemies of the 340B Drug Discount Program continue to wage a campaign of deception by spreading the blatant lie that taxpayer money is involved in a program that helps America’s safety-net hospitals better care for their low-income patients.

Truth bomb: Not a single cent of public money is spent on 340B. The program is entirely funded by the drug industry.

So why does the lie persist? Because Big Pharma can’t stand the truth. Case in point is Citizens Against Government Waste. For years the group has attacked 340B as a scourge of good government. With no public money involved, why does CAGW even care? Could it be that they are receiving funds from the drug industry?

In a recent op-ed, CAGW President Thomas Schatz lied about the intent of the drug discount program: “Congress intended for the program to help low-income and uninsured patients with their prescription drugs.” He goes on to say, “Consumers and taxpayers pay for the diversion and waste of 340B funds through higher drug prices, taxes and premiums.”

Schatz knows he’s prevaricating and probably hoped no one would notice. We did, and we will hold him accountable for his lies.

Safety-net hospitals that treat large numbers of poor patients receive 20 to 50 percent discounts from drug manufacturers. They use those savings to offset the cost of providing care to people who cannot afford to pay. Savings also help pay for a wide variety of services, including mobile mammogram units, maternal healthcare and mental health services. That’s how 340B works. It is not – and never was — a direct patient benefit program.

And don’t forget: The drug industry gets to make billions selling into Medicaid and Medicare as a result of participating in 340B.

The other liar is Dan Crippen, former director of the Congressional Budget Office, who is now cashing checks from AIR 340B, a pharma-funded astroturf group that’s been trying to bury the program for years.

Crippen makes the laughable claim that 340B is “contributing to the federal deficit” because program savings for non-profit hospitals and clinics are not taxed. (Neither are revenues for churches, by the way.)

Big Pharma is grabbing every lever at hand to kill the program. The bogus tax argument is the weakest. If 340B disappeared tomorrow, zero savings would accrue to the public purse. Drug companies would simply stop providing discounts and keep ever more billions for themselves. Safety-net hospitals and clinics would face crippling shortfalls and many would close, denying millions of Americans access to basic health care.

That disturbing outcome has nothing to do with government waste or taxes, but don’t expect to hear the truth from Schatz or Crippen.