Is the 340B program going away?

Is the 340B program going away?

Major drug companies such as AstraZeneca and Eli Lilly announced they would no longer provide 340B-discounted products to contract pharmacies.

Why is 340B bad?

Bad actors in the 340B program have realized that they can make substantial profits by buying deeply discounted cancer drugs, which are then reimbursed by Medicare and private insurers at full cost — providing hospitals with up to 100% profit margins on these expensive drugs.

What is the Medicare 340B program?

This month, the Supreme Court will hear a case involving the 340B Drug Pricing Program, which is designed to allow hospitals and clinics that treat low-income, medically underserved patients to purchase outpatient drugs at discounted prices.

Who pays for the 340B program?

A federal program that is not funded by taxpayers. Drug manufacturers are required to participate in the 340B program to be included on Medicaid and Medicare’s covered drug list. Discounts range from 20-50% off drug prices.

Are all drugs 340B eligible?

According to the 340B statute, FQHCs (and other covered entities) may only provide 340B purchased drugs to individuals who are “patients” of the entity. As a result, policymakers often talk about the “patient definition” as the tool for determining eligibility for 340B drugs.

Is 340B only for Medicare?

All eligible patients, including Medicare and private insurance could enroll in the 340B program. Those who wish to enroll in the 340B program must be a patient at Ampla Health: The individual receives primary health care services from a provider of Ampla Health.

Is 340B program at risk?

The 2021 version has 36 risk areas, including Department of Defense (DOD) Weapons Systems Acquisition, Medicare and Medicaid, and the National Flood Insurance Program. …

When did 340B program start?

The 340B Drug Pricing Program is a US federal government program created in 1992 that requires drug manufacturers to provide outpatient drugs to eligible health care organizations and covered entities at significantly reduced prices.

HOW DO 340B pharmacies make money?

Participation in the 340B program shifts a pharmacy’s profit source from dispensing spreads to per-prescription fees paid by a 340B-qualified entity. In some cases, the pharmacies share in the profits generated by 340B prescriptions, which raises further questions about who benefits from the program.

Is Walgreens a 340B pharmacy?

Walgreens remains the dominant 340B contract pharmacy participant. Nearly 8,000 Walgreens locations act as 340B contract pharmacies. The chain therefore accounts for more than one-quarter of all locations. More than 80% of all Walgreens locations are now 340B contract pharmacies.

Who can receive 340B drugs?

A: The 340B Program does not limit the drugs a covered entity can use or prescribe; however, 340B drugs may only be provided to individuals who are patients of the covered entity grantee.

What is the future of 340B?

340B Program has Uncertain Future. The government’s 340B drug discount program, which was begun in 1992, has been under the scrutiny of the Administration and Congress for the past two years with ill effects for participating hospitals and the potential for more reform on the horizon. “It’s misguided,” says William Ferniany, PhD, CEO of UAB Health System, one of the 40 percent of U.S. hospitals that qualify for the program, along with tens of thousands of clinics.

Is 340B at risk?

Unfortunately, this critically important program is at risk. In recent years, pharmaceutical manufacturers have intensified their efforts to scale back the 340B program in Washington by limiting hospital and patient eligibility – pursuing actions that would adversely impact access to care for the most vulnerable citizens.

What is the 340B program, how does it work?

340B enables health care providers, such as qualifying hospitals, federally qualified health centers (FQHCs) and federal grantees, to access medications at a discounted price. The program was intended to help these entities redirect the savings from 340B to expand care and benefit the patients who are most in need.

Who is eligible for 340B pricing?

Only “outpatients” are eligible to receive prescription drugs at 340B discounted prices because the program is an outpatient program. In 1996, HRSA issued guidance for an individual to qualify as a patient of a 340B facility.