Almost 30 years ago, lawmakers designed a federal drug discount program that aimed to help health care nonprofits treat more low-income patients. The program allows these nonprofits to buy prescription drugs at a steep discount and then be reimbursed by health plans at a much higher price. Under existing law, these nonprofits are supposed to use this taxpayer-generated excess revenue to offer more health care benefits and serve more patients.
But some organizations have abused the program, amassing hundreds of millions meant to help patients and instead wasting it on private concerts, giving their executives multimillion-dollar salaries, paying for naming rights on sports stadiums, or spending millions on lobbying and dumping millions more into political campaigns.
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