340B found to have minimal effect on pricing, countering notion that it’s a driver of healthcare spending

Healthcare Finance News January 20, 2020
Jeff Lagasse

Spending on cancer drugs was 2 to 5% higher than that of non-participants, and 1 to 7% higher than physician offices — a modest effect on consumers.

The 340B drug discount program has been a source of controversy, with the pharmaceutical industry claiming that it’s one of the main drivers of rising healthcare spending. But a study from the Medicare Payment Advisory Commission challenges that assertion, finding that its effect on cost sharing for patients is minimal.

For hospitals participating in 340B, spending on cancer drugs was 2 to 5% higher than that of non-participants, and 1 to 7% higher than physician offices. That translates into a modest effect on healthcare consumers.

The evidence is limited, though, and ultimately inconclusive....

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