Sen. Bill Cassidy introduced a bill aimed at restricting the 340B drug discount program amid renewed scrutiny of how the program is used by nonprofit hospitals. Cassidy’s proposal follows years of investigations and hearings tied to whether 340B is meeting its intended purpose of supporting vulnerable patients while limiting unintended financial advantages. At BIO 2026, speakers and research cited by advocates argued that the program’s scale and transparency gaps have distorted parts of the U.S. healthcare system. Commentary also pointed to concerns around “duplicate discounts” increasing costs and complicating the affordability picture. The policy direction matters for biotech because 340B influences reimbursement, contracting behavior, and the willingness of providers to adopt high-cost therapies—especially in oncology and specialty care.