New 340B Report Shows Program’s Problems

A recent report from the COB suggests that the 340B program has surpassed its original intent and has become a source of high healthcare costs in the US. The 340B program requires drugmakers to sell out patient drugs to participating hospitals and clinics at a discount, with the intent of lowering out of pocket costs for patients, but the program is actually responsible for raising the price of healthcare. The COB’s report found that the program incentivizes hospitals to buy more clinics and spend more on drugs without passing their discounts down to their patients. This study adds to a large body of research that suggest that the 340B program drives hospital consolidation and the expansion of pharmacy networks which drives up costs for patients and ensures without increasing quality or access. Our Health Equity advocates for large scale reforms to the 340B program that ensures patients have access to the medicine they need at a reasonable price. Read more here.