Kody Kinsley, former Secretary of the North Carolina Department of Health and Human Services, said that the 340B drug discount program requires reform to maintain support for underserved communities while enhancing transparency and accountability.
“For community health centers in North Carolina, 340B contributed 22 percent to overall revenue,” said Kinsley, Secretary of Health and Human Services, according to LinkedIn. “We need to remember: 340B is a ‘bandaid’ on a system of care where so many people lack sufficient insurance. Let’s be measured and ensure we don’t inadvertently strip away this critical lifeline. As policymakers consider more transparency, they have to think about how to minimize administrative burden.”
According to the Kansas Legislative Research Department, the federal 340B Drug Pricing Program allows eligible healthcare providers to purchase outpatient drugs at discounted rates to support services for underserved patients. Established in 1992, the program aims to help safety-net facilities stretch scarce federal resources to reach more patients and offer comprehensive care. While its scope has expanded significantly, concerns remain about program oversight and whether patient benefits are being maximized.
The National Association of Community Health Centers reported in 2023 that North Carolina’s health centers served more than 756,000 patients across 85 counties. These centers contributed over $1.5 billion in total economic impact and supported more than 10,700 jobs statewide. The report also noted that 86% of patients were low-income, highlighting the critical role of 340B program savings in maintaining access to essential services.
Between 2000 and 2020, the number of 340B covered entities increased more than sixfold, while total drug purchases under the program exceeded $38 billion in 2020. Despite its growth, the program has faced criticism for lack of transparency and variation in how savings are used. Stakeholders have called for reforms to ensure that patients are the primary beneficiaries.
Kinsley served as Secretary of the North Carolina Department of Health and Human Services from 2022 until early 2025. He led the state’s response to Medicaid expansion and focused on behavioral health reform and improving rural health infrastructure. Prior to his role in North Carolina, Kinsley worked in federal health policy, including at the U.S. Department of Health and Human Services.
