340b Drug Pricing Program Case Study

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The 340B Drug Pricing Program: Cut Backs or More Addendums?
Created by the US federal government in 1992, the 340B Drug Pricing Program was supposed to help poor patients acquire outpatient drugs at significantly reduced prices. It mandates drug manufacturers to allow covered entities to reach as many eligible patients as possible by stretching scarce federal resources. Unfortunately, the pricing program has now become a source of pain, rather than cure, for many patients.
A clever lawyer discovered a massive loophole in the 340B Drug Pricing Program, turning it from an obscure government program into a means for hospitals to make money at the expense of patients. 340B specifies that drug manufacturers provide discounts to poor people, not whoever provides the outpatient …show more content…
A report by AIR 340B, a group linked to drugmakers, revealed that the 340B Drug Pricing Program has gone unchecked for too long, resulting in an estimated program sales of $16.1 billion for 2016 and an expected total drug sales to reach $23 billion by 2021. The group is urging policymakers to reexamine the program, and ensure that it serves its original intent. They're also pushing to limit the program's expansion.
In an AIR 340B-sponsored roundtable discussion, senior legislative assistant for Rep. Chris Collins (R-N.Y.), Ted Alexander said that Collins are looking to improve transparency of the program, but nothing is certain about what will happen to it. What is certain, however, is that a number of different health care bills will be submitted next Congress, and stakeholders would do well to gather information as to how the 340B Drug Pricing Program will affect federal spending
Last November, the Health Resources and Services Administration (HRSA) has released an addendum to the 340B Drug Pricing Program. This required drug manufacturers to include in their existing PPA the following
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Summary: 340B Drug Pricing Program

Read Case 13 340B Drug Pricing Program Oversight on pages 380-388 of your text. Once you have read the case, you are to address these questions. The word limit per response is 200 words. 1. What seems to be the true intent of the 340B drug discount program? The U.S Federal Government enacted the 340B Drug Discount Program in 1992 as a subsection of the Public Health Services Act through the Department of Health and Human Services. According to the Department of Health and Human Services…

Words 645 - Pages 3