Reform of federal drug discount program should target misaligned incentives
The dramatic growth of a key federal drug discount program has fueled debate about whether it is helping low-income patients as intended or primarily benefiting healthcare providers.
Congress created the 340B Drug Pricing Program over 30 years ago to help hospitals and clinics that serve high levels of uninsured patients purchase outpatient drugs from manufacturers at significantly discounted prices. However, the law does not require participating providers to pass on discounts to patients or dedicate program funds to safety-net care.
A new white paper from the USC Schaeffer Center for Health Policy & Economics traces how major eligibility expansions and distorted program incentives ...