A Bipartisan Regulatory Reform Opportunity: 340B - Pacific Research Institute

A Bipartisan Regulatory Reform Opportunity: 340B

Health pina messina kfJkpeI6Lgc unsplash

Despite the rancor, there are many bipartisan opportunities for the divided 118th Congress. Near the top of the to-do list should be reforming the well-intentioned, but poorly designed, 340B drug discount program.

340B enables qualifying institutions to purchase medicines from manufacturers at steep discounts, generally between 25% and 50% off list price, but sometimes even larger. These discounts are supposed to improve the capacity of the clinics and hospitals serving a disproportionate share of low-income and uninsured patients. More and more, this is not how the program is working.

Instead of subsidizing a small number of clinics and hospitals, 340B has become the second largest drug discount program in the country. Over the most recent 5 years, the value of 340B drug purchases have grown over 22% annually.

Click to read the full article in Forbes.

Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.

Scroll to Top