Federal 340b Drug Discount Program May be Reformed

New recommendations suggest reforming the federal 340b drug discount program. Originally designed to help providers serve the poor or underinsured, misuse has raised concerns for greater transparency in prices and how hospitals are using 340b savings. Modern Healthcare reports:

Safety net hospitals issued recommendations Tuesday for reforming the federal 340b drug discount program, which was designed to help clinics and hospitals serving the poor and uninsured but has become controversial because of alleged misuse by some hospitals.

The recommendations included increased transparency of 340b prices and how hospitals use 340b savings, audits of drug manufacturers and more scrutiny of contract pharmacies that participate in the program. They were released by the Safety Net Hospitals for Pharmaceutical Access, a trade group that represents more than half of the participating 340b hospitals.

Roughly one third of the nation's hospitals participate in the 340b program, and that growth has fueled a debate about reforming the decades-old program.

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