EXCLUSIVE: Rep. Troy Downing Calls 340B program ‘Crazy,’ praises Trump’s healthcare fraud crackdown

Rep. Troy Downing (R., Mont.) is praising the Trump administration’s efforts to crack down on healthcare fraud while arguing that the federal government’s rapidly growing 340B drug discount program deserves far greater scrutiny.

In an exclusive interview with the Washington Reporter’s editor-in-chief Matthew Foldi, Downing said the 340B program has expanded far beyond its original purpose.

“340B is crazy; it’s the largest drug program and growing,” Downing said. “It was intended for the uninsured, lower income people. As we’ve seen uninsured numbers drop, 340B has grown. Something is going on there.”

Downing’s comments come after the Trump administration’s healthcare fraud task force recently announced charges against a Haitian national accused of orchestrating a $58 million scheme involving the 340B program. The case is part of a broader administration effort to crack down on fraud across Medicare and Medicaid.

The Washington Reporter has closely followed the debate over the 340B program, including the Trump administration’s transparency efforts and concerns from congressional Republicans that the program has expanded well beyond its original intent. Read our previous coverage and comments from leading Congressmen on the reform efforts. 

Drawing on his experience as Montana’s former insurance commissioner, Downing said he witnessed firsthand how fraudsters exploit government healthcare programs.

“I saw a lot of this fraud firsthand in my previous job when I was working as Montana’s insurance commissioner,” Downing said. “We uncovered a $55 million fraud where they were preying on tribal Montanans. They were rounding them up, canceling one plan, putting them on another, shipping them off, and saying they would help them with addiction, but not actually do anything.”

Downing said similar abuses continue across the country.

“Look at what we’ve uncovered federally. $6.5 billion of Medicare and Medicaid fraud. Skin graft fraud is out of control; they are defrauding our system,” he said. “These fraudsters are buying Maseratis. One bought a resort in the Philippines. All of this is happening on the backs of the American taxpayers.”

Downing rejected claims that the administration’s anti-fraud efforts would harm vulnerable patients.

“When everybody says you are hurting the most needy, no, we are not,” Downing said. “We have a duty to taxpayers.”

He also praised the coordination between the FBI, the Centers for Medicare & Medicaid Services, state attorneys general, and CMS Administrator Dr. Mehmet Oz in pursuing healthcare fraud.

Downing pointed to his legislation, the PARTNERS Act, which would allow states to enter into agreements with CMS to pursue healthcare fraud investigations more effectively.

“As a former insurance commissioner, I’ll tell you that states want to take care of their own,” Downing said. “The issues that I had in Montana are that we had these 1970s sports heroes and celebrities who were selling Medicare Advantage programs in Montana and defrauding these seniors, and selling them programs that may not have had care in our state, and there was nothing I could do.”

“There are a lot of issues we need to do,” Downing added, “but let’s start with low-hanging fruit.”