Study Hits at Broken 340B Program, PhRMA Says

Results of a study commissioned by PhRMA support the argument that the federal drug-discounting 340B program “is benefiting hospitals at the expense of patients,” PhRMA CEO Stephen Ubl said.

The program requires drugmakers to offer outpatient drugs at discounts of up to 50 percent to qualifying safety-net hospitals, with the goal of expanding care for underserved populations.

The study, by the Berkeley Research Group, showed that the program’s share of Medicare Part B reimbursements in hospital settings increased threefold in 2008-2015 for treatment of breast cancer, rheumatoid arthritis and multiple myeloma while declining in less expensive physician-office settings, as the share of reimbursements at non-340B hospitals held steady. A shift to more expensive settings can mean higher costs for Medicare beneficiaries and privately insured patients who pay a portion of the treatment charges, PhRMA said.