The program, known as the 340B program, sets a price ceiling for prescription drugs to try to ensure affordability and access for Medicaid beneficiaries. A June 2011 Health and Human Services Inspector General report raises questions of program integrity without proper federal oversight of taxpayer dollars. Without oversight, it’s impossible to know whether the money is being used as intended. The Government Accountability Office is expected to release a report soon that will further elaborate on the lack of oversight of the 340B program. The federal Health Resources and Services Administration runs the discount drug program.
Grassley, Hatch and Upton wrote to the administrator of the Health Resources and Services Administration. The text of their letter is available here.