A recent report by the CBO confirms that the 340B program, which was originally designed to help safety-net hospitals and clinics buy outpatient drugs at a discount, is now imposing a major cost burden on taxpayers without clear proof that patients benefit.
Key takeaways:
- The markup practice: Participating hospitals buy drugs at 340B discounted rates, but then bill insurers and taxpayers at much higher prices.
- Fiscal impact: The CBO finds the program “costing taxpayers money,” with large institutions benefiting most while the program’s mission to aid vulnerable patients appears under-delivered.
- Lack of evidence of patient benefit: There’s no solid data showing that the savings from 340B are being passed on to patients, or that the program consistently improves access to care in the intended populations.
- Policy implications: Reform advocates argue the program’s scope and oversight need updating so the original safety-net objectives are better achieved and taxpayer dollars better protected.
Why this matters to our audience:
Whether you’re a payer, a provider, or a patient advocate, this highlights how a long-standing federal program may be diverging from its original goals. It underscores the importance of transparency in how such programs are administered and ensures benefits go where they were intended.
What to watch next:
Stakeholders will be watching legislative responses and regulatory changes as the debate evolves over how to align 340B’s incentives with outcomes for patients and the health system.
Read the full article here
Download the full CBO report here
