The Ohio Manufacturers’ Association (OMA) testified Wednesday before the Senate Health Committee to oppose Senate Bill 198, which would expand the federal 340B Drug Pricing Program. The program was created to help low-income patients access affordable medicine, but OMA says it has drifted from its mission and now drives up health care costs for Ohio employers.
James Lee, OMA managing director of public policy services, told lawmakers that large hospital systems and pharmacy benefit managers are reaping profits while employers and workers foot the bill. A study by IQVIA estimates Ohio employers pay about $275 million each year in hidden costs tied to the 340B program.
Joining OMA, William Smith of the Pioneer Institute detailed how 340B institutions exploit drug discounts and often operate in affluent areas rather than serving low-income communities.
OMA urged legislators to restore transparency provisions vetoed from the state budget and consider reforms modeled after Indiana, which has adopted stronger oversight to ensure the program benefits patients rather than institutions. 11/12/2025