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Health Affairs January 18, 2026
Abstract
The Medicaid Drug Rebate Program and the 340B Drug Pricing Program are generally understood as separate efforts to promote drug affordability—one by directly subsidizing low-income patients through insurance coverage (Medicaid) and the other by indirectly subsidizing safety-net clinics and hospitals (340B). Yet they interact in ways that can unintentionally raise costs for Medicaid....
