In the midst of all the political chaos, most people aren’t paying much attention to what’s happening at the federal level to try to keep healthcare costs down for consumers. . . But we are.
This one’s top on our list. In 1992 Congress passed an act creating what is known as the 340B Drug Pricing Program. It was a good move. The program was designed to help vulnerable patients access medications that they might not otherwise be able to afford, by forcing drug manufacturers to provide steep discounts on outpatient medications to what is called “safety net” clinics and hospitals. It’s still in effect today, with 57 percent of all hospitals, and 46 percent of contract pharmacies in the U.S. participating in the program, including in Colorado, Nevada, Utah and Arizona.
The expectation was that savings would be used to ensure vulnerable patients have access to their medications. Not surprisingly, it would appear that the cost savings are now primarily being diverted to middlemen, known as Pharmacy Benefit Managers, to boost their bottom line.
According to research by the Pharmaceutical Research and Manufacturer’s Association, the top performing 340B hospitals nationwide collected nearly $10 in total profit for every $1 they invested in charity care.
Fortunately, this misdirection of funds has been discovered and Congress is once again looking at how to tighten regulations around the program so that, instead of benefiting an industry, it stays true to its intent, to help less affluent Americans, be able to afford their life-saving medications.
CHAIN is monitoring the legislation. Stay tuned. We may need your help in lobbying Congress in the near future.