Boston University policy analyst Elsa Pearson and I have a new piece up at STAT about the unintended and undesirable consequences of the 340B drug discount program. That program requires drug manufacturers to sell drugs to some hospitals and clinics at a discount. However, those organizations can get reimbursed from payers at higher prices, pocketing the difference.
That could be sensible, depending on what use that net revenue is put. Research suggests that in many cases it isn’t used to benefit the high cost/high risk populations the program is intended to help. We cover that research.
There are bills in Congress to reform the program. Our piece explains what they are and what they’d do. Go read it!
Research for this piece was supported by the Laura and John Arnold Foundation.
