The 340B program is a federal program that allows certain hospitals and clinics to buy prescription drugs at discounted prices. It was created to help providers serve low-income and underserved communities. Health systems have been criticized for placing excessive markups on discounted drug and selling them at large profits.
Key Takeaways
- Federal program that provides discounted drug pricing
- Applies to certain hospitals and clinics
- Intended to support care for underserved communities
- Often abused through price markups by health systems for revenue gains
How does the 340B program work?
Eligible providers can purchase drugs at reduced prices through the 340B program. Markups are then placed on the drugs and billed to patients and their insurer. The difference between the discounted price and reimbursement retained by the provider as profit.
This structure is intended to support patient care, but discounts are rarely passed on to patients.
Why does the 340B program exist?
The program was created to help underserved populations access medications at discounted prices.
What this means in North Carolina
In North Carolina, the 340B program is part of ongoing discussions around healthcare costs, access, and transparency. Policymakers continue to evaluate how the program is used and how hospital markups impacts costs.
Reforms to the program are part of policy conversastions around Rx costs and transparency in North Carolina.
