The Battle Over Nutrition Label Rules and the 340B Drug Discount Program

Ben H.

Hatched by Ben H.

Sep 26, 2023

4 min read


The Battle Over Nutrition Label Rules and the 340B Drug Discount Program


The fight over nutrition label rules and the 340B drug discount program has become a contentious issue, both in Mexico and the United States. Kellogg's, along with other food companies, is waging a war over Mexico's policy that requires warning labels on unhealthy food packaging. Similarly, the 340B program, which provides drug discounts to hospitals serving low-income patients, has faced legal and regulatory challenges, raising questions about its effectiveness in supporting hospitals that provide uncompensated care. In this article, we will explore the common points between these two battles and discuss the implications they have on consumer health and healthcare access.

Kellogg's Battle in Mexico:

In Mexico, Kellogg's has taken a strong stance against the nutrition label rules. The company is being forced to include warning labels on its boxes, which highlight the excessive sugar and fat content of its products. Furthermore, any food with a warning label is banned from featuring a mascot on its packaging. Kellogg's has sued the Mexican government over this policy and has gone to great lengths to keep its mascots alive through marketing initiatives. The company has even replaced sugar with the sweetener allulose in some of its products to comply with the regulations, exploiting a loophole in the policy.

Exploiting Loopholes:

Kellogg's is not the only company finding ways to circumvent Mexico's labeling policy. Other food industry giants like Coca-Cola and Kraft Heinz have designed their packaging in a way that hides the required warning labels from consumers. By creating two nearly identical labels, supermarkets often place the products with the warning facing inward, effectively concealing it. Dozens of companies have also sued the Mexican government over the policy, and some cases have reached the Mexican Supreme Court.

Implications for the United States:

The battle over nutrition label rules in Mexico has caught the attention of U.S. regulators who are considering implementing a similar policy. The Food and Drug Administration (FDA) is studying the idea, citing the potential benefits for consumers in making healthier choices. However, advocates warn that the U.S. should be prepared for a long and fierce political fight, as the food industry is expected to push back against any regulations that could impact their sales and marketing strategies.

The 340B Program and Uncompensated Care:

In a parallel struggle, the 340B drug discount program in the United States has faced legal and regulatory challenges. The program, designed to provide drug discounts to hospitals serving low-income and uninsured patients, has been criticized for benefiting hospitals that provide relatively less uncompensated care. Modern Healthcare's analysis reveals that hospitals receiving the largest 340B remedy payments tend to provide proportionally less uncompensated care compared to other eligible hospitals. This raises concerns about whether the program is effectively supporting hospitals with the heaviest burden of care for low-income patients.

Reforming the 340B Program:

Calls for reforming the 340B program have intensified as it has experienced significant growth over the years. The program has expanded to include a large number of hospitals, clinics, and pharmacies, resulting in the spread of program dollars across too many entities. Critics argue that this dilution of resources limits the program's impact on underserved communities. However, supporters of the program recognize that it is not perfectly targeted and may need restructuring to ensure it effectively reaches the intended beneficiaries.


The battles over nutrition label rules and the 340B drug discount program highlight the challenges faced in promoting consumer health and ensuring access to healthcare for low-income individuals. While both issues may seem unrelated, they share common themes of industry pushback and the need for stronger regulations to protect public health. To address these challenges, here are three actionable advice:

  • 1. Strengthen regulations: Regulators should ensure that nutrition label rules and the 340B program have robust regulations that cannot be easily exploited or circumvented by industry players.
  • 2. Targeted support: The 340B program should be restructured to better target hospitals that provide the highest levels of uncompensated care to low-income patients, ensuring that the program's resources are effectively utilized.
  • 3. Public awareness and advocacy: Consumers and advocates should stay informed about these issues and actively support policies that prioritize public health and equitable access to healthcare.

By addressing these challenges head-on, we can strive for a healthier and more equitable future for all.

Hatch New Ideas with Glasp AI 🐣

Glasp AI allows you to hatch new ideas based on your curated content. Let's curate and create with Glasp AI :)