The U.S. Department of Health and Human Services (HHS) assistant secretary for planning and evaluation (ASPE) on Oct. 8 published a brief titled Mission vs. Margin: Misaligned Incentives in the 340B Drug Pricing Program. The brief describes recent growth in the 340B program, both in terms of the number of covered entities, contract pharmacies, and child sites participating in the program, as well as the associated increase in spending on covered outpatient drugs. The brief argues that 340B is a driver of consolidation in the health care system, alleging that 340B providers prioritize financial spread over patient needs.
In the brief, the ASPE analyzes Medicare outpatient drug spending growth for 340B and non-340B hospitals when previous drug payment cuts were in effect from 2018 to 2022 and suggests that those payment reductions helped control the growth of Part B drug spending. Citing these findings, the ASPE concludes that implementing the Outpatient Prospective Payment System drug payment reductions in the calendar year 2027 proposed rule would slow down consolidation and spending growth [refer to Washington Highlights, Sept. 4]
- Washington Highlights