On January 20, a new administration began addressing our nation’s pressing problems, including health care costs. Drug costs are unaffordable for many, especially those in small communities with limited access to medical care. Working-class families understandably feel powerless against big, profit-hungry pharmaceutical corporations. They are often forced to decide between taking needed medications or paying other important bills.
In Louisiana, we have made tremendous progress at the state level to protect a little-known but vital drug discount program, 340B, which costs taxpayers nothing and bolsters health care for our citizens. In 2023, Louisiana enacted Act 358, a common-sense law that ensures pharmaceutical companies honor their commitments by prohibiting discriminatory practices against 340B entities and protecting community pharmacy access.
The law quickly became a national model. In Pharmaceutical Research and Manufacturers of America v. Liz Murrill, drug companies challenged it in court, claiming it would hurt their profits. However, in September 2024, the U.S. District Court for the Western District of Louisiana rejected these claims and found our law constitutional, allowing it to go into effect. Similar cases in Arkansas and Mississippi have yielded the same positive outcome.
340B requires pharmaceutical companies to offer crucial medications at a discount to hospitals that serve less well-off Americans, particularly in rural areas. Hospitals use these savings to provide free or low-cost medications to needy patients and fund vital health services often unavailable in rural communities, such as obstetric care, trauma and burn care, and care for people with opioid dependency. They also use the savings to recruit and retain doctors and nurses who might otherwise feel compelled to practice elsewhere.
In exchange for providing these discounts, drug companies gain access to the lucrative Medicare and Medicaid programs, reaping billions in profits. Despite this, Big Pharma and its allies are working tirelessly to undercut this program and attempt to gut it, if not kill it outright. One of those moves prevented people from buying discounted drugs at their local pharmacy, driving prices up and forcing some mom-and-pop drug stores out of business.
Louisiana’s success in defending 340B demonstrates that bold action at the state level can pave the way for protecting this vital program nationwide—but it also highlights the need for vigilance and advocacy at the federal level. That’s because the pharmaceutical industry has now focused on lobbying Congress to slash 340B so that many hospitals and clinics serving the poor would be ineligible for discounts. What they’re not saying is that their legislation would close more hospitals and burden taxpayers with billions in bailouts while padding drug company profits.
Louisiana now has strong advocates in Washington, D.C., including House Speaker Mike Johnson, who is leading the battle to enact President Trump’s agenda for our nation. We’re also blessed with the leadership of Majority Leader Steve Scalise. With their wisdom and leadership, Louisiana has a real chance to lead the fight to protect rural Americans and their health care from pharmaceutical industry overreach.
Protecting 340B reflects the kind of common-sense solutions that Americans are eager to see more of in today’s policy decisions. Louisiana has led the way on this issue, and we need to continue this work in 2025 and support the new administration in Washington.
To be clear, protecting 340B isn’t just a Louisiana issue—it’s about preserving affordable healthcare options for rural and underserved communities nationwide. Now is not the time to fall for Big Pharma’s tricks or let them pad their pockets at the expense of the most vulnerable. It’s time to deliver for average Americans—including those in Louisiana—who too often feel forgotten. Protecting 340B is a vital part of that mission.
Michael Lunsford is the Executive Director of Citizens for a New Louisiana and was born, raised, and grew up in Lafayette. He believes accountability and transparency are only possible if someone is willing to shine some light into the dark corners of local and state government. He is devoting his time and energy to providing the local citizens with the truth and knowledge, ensuring that their elected officials act with integrity.
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