February 01, 2018

340B Drug Pricing Program: Uncertain Future and Need for More Guidance

Ayeisha A. Cox, Esq., DrFirst, Inc., Rockville, MD

The 340B Drug Pricing Program (Program) plays a key role in ensuring that low-income patients have access to essential health services and medications. Yet the Program has been under increased scrutiny in recent years due to studies and reports accusing covered entities of using revenue gained from the Program for reasons other than to expand patient services and provide charity care.1 Although the Health and Resources Services Administration (HRSA)2 has made efforts to increase the transparency of the Program, more oversight and transparency into how covered entities use revenue generated by the Program is needed. While the Program needs greater oversight, Congress and HRSA should avoid “knee-jerk” reactions that could result in financial burdens on hospitals and non-hospital entities providing necessary medical care at reduced costs to vulnerable patients.

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