340B Hospitals Charging Private Insurers Nearly Four Times Acquisition Costs On Cancer Drugs – Study
New report makes a case for further scrutiny of the 340B program's contributions to high drug costs, although manufacturers remain the main target of legislative and regulatory reform proposals.
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Hospital receive an average of 2.5 times what they pay for drugs in reimbursement from commercial payers, a white paper released by the trade group reports. And consolidation has increased the leverage hospitals wield in payment negotiations.
The US government program that allows safety net providers to purchase drugs at deep discounts is probably not what most American voters have in mind when they say drug pricing is a top issue. But the 340B program has been a rare area of consistent focus – and actual sustained change – in the Trump Administration.
Heavily rebated drugs may already be meeting the price goals established by the Senate legislation. As a result, price negotiation for drugs covered under Part B are likely to yield greater savings to the Medicare program than Part D.