The 340B drug pricing program requires pharmaceutical manufacturers to provide outpatient medications at steeply discounted prices to certain types of hospitals and health clinics. Intended to provide critical cost savings for hospitals and other entities that provide charitable care for patients without health coverage, eligibility for the largest proportion of entities participating in the
Eakinomics: No A Grade for 340B Reform
As Eakinomics has noted previously, the 340B program, which requires manufacturers to provide heavily discounted drugs to hospitals that are treating low-income individuals, was created in reaction to the Medicaid best price (price fixing) requirement. The 340B program has mushroomed out of control: the discounts are poorly targeted,
a manufacturer’s drugs to be covered by the Medicaid program, the manufacturer must agree to participate in the 340B Drug Pricing Program (340B). Under the 340B program, manufacturers must provide discounts to eligible health care providers for covered outpatient drugs. As the federal government pays for roughly 40 percent of all prescription drugs in
and Commerce Committee will hold a hearing before the Oversight and Investigations Subcommittee entitled “Examining How Covered Entities Utilize the 340B Drug Pricing Program.” It is worth taking a close look.
Recall that the 340B program is the misbegotten offspring of price controls in the Medicaid program. Specifically, in 1990 Congress created the Medicaid Drug Rebate Program that
White House has yet to state whether they will continue the CSR payments beyond this month.
Eakinomics: HHS and the 340B Program
Price controls for Medicaid drugs date to 1990, which witnessed the creation of the Medicaid Drug Rebate Program. It put a ceiling on the price of prescription drugs provided to Medicaid beneficiaries. It also created the Medicaid
Human Services (HHS)—Xavier Becerra led a letter to HHS calling on Secretary Azar to enforce provisions of the 340B Drug Pricing Program he maintains pharmaceutical companies are violating. The letter is significant because it signals that the man who could take over HHS in a few months is gearing up to expand the bloated
The 340B program was originally intended to correct an imbalance created by the passage of the Medicaid Drug Rebate statute. It was meant to play only a small role in the health insurance market. However, as with most interferences in the free-market, the 340B rule has “expanded beyond its bounds”, in the words of
As HHS Secretary Alex Azar will speak at the 340B Coalition conference today, American Action Forum's extensive research on the history, mechanisms, and consequences of the 340B program may be helpful. Several of our recent pieces are below, for your reference.
Market Distortions Caused by the 340B Prescription Drug Program - This research explains
This week the 340B Drug Discount Program has been in the news. First, Health and Human Services Secretary Alex Azar addressed the 340B Coalition on the topic of drug prices in what organizers described as a “frank” speech. Then on Thursday the House Energy and Commerce Health Subcommittee held a hearing examining abuse in
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