The 340B Drug Pricing Program: Challenges and Solutions - AAF

The 340B Drug Pricing Program: Challenges and Solutions – AAF

Congress established the 340B Drug Pricing Program in 1992 to increase access to lower-cost care for patients. In new research, health care policy analyst Jackson Hammond explores the problems with the 340B program, considers the consequences of the program’s pitfalls, and offers potential solutions.

Key points:

  • The 340B drug pricing program has grown dramatically since its inception, and especially in the years following the passage of the Affordable Care Act.
  • Although the program increased profits for hospitals, it arguably fell short of its supposed goal of thwarting a side effect of Medicaid’s best-price rule that ended manufacturers’ drug donations to hospitals.
  • 340B reform will require a clear statutory purpose for the program, increased transparency and accountability measures, and more explicit guidance on how 340B savings can be used by covered entities.

Read the analysis


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