The 340B Drug Pricing Program was started in 1992 by Congress to help offset the costs of providing medications to low-income patients by allowing certain hospitals to purchase prescription drugs at significantly discounted prices. Over the past 15 years the program has grown considerably, now accounting for over $60 billion annually. As such, scrutiny has grown about the scope and potential abuses within the program and questions have arisen whether 340B discounts are reaching the patients they are intended to serve and whether the program is improving access to care for low-income patients, including those in rural and underserved areas.
The Lupus Foundation of America and the Arthritis Foundation partnered to commission research on the impact of 340B on lupus and rheumatoid arthritis. The resulting paper, embedded below, provides an overview and discussion of the data, questions for further study, and recommendations for action steps.
Below are four principles we recommend for consideration in any 340B reform efforts:
- Increased Transparency. Better transparency into how 340B revenue is being allocated and whether it is appropriately being utilized to support low-income and uninsured patients is a critical step in reforming the program.
- Reduced Patient Out-of-Pocket Costs. 340B revenue should first and foremost be utilized to lower out-of-pocket costs for the most vulnerable patients, in keeping with the original intent of the program. Reform policies should ensure that low-income, underinsured, and uninsured patients are protected against burdensome out-of-pocket costs. Further, no patient should pay a higher out-of-pocket cost for their prescription than the hospital or facility is paying to acquire the drug, regardless of income status.
- Medical Debt Protections. Guardrails should be in place to ensure entities receiving 340B revenue are not engaging in aggressive medical debt collection practices.
- Charity Care Guardrails. Entities receiving 340B revenue should prioritize their charity care programs and ensure 340B discounts are being utilized to support charity care needs.
This post was originally published on this site