News Alert

Health Centers Ask Congress and Biden to Intervene to Protect 340B Savings from Pharma and PBM “Greed”

bar chart of health centers' 340B savings utilization
An infographic NACHC released today in conjunction with a new survey of its members. The health center association wants Congress and the Biden administration to pass laws protecting centers from drug manufacturer and PBM policies that it says threaten centers' financial viability.

The National Association of Community Health Centers urged Congress and the Biden administration this afternoon to force drug companies to ship 340B drugs to contract pharmacies unconditionally and stop pharmacy benefit managers from siphoning off health centers’ 340B savings.

NACHC

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PhRMA-funded Study Faults 340B Hospitals’ Financial Aid and Debt Collection Policies

A hospital stay invoice
The AHA sharply criticized a new PhRMA-funded study that says many 340B hospitals “may not offer low-income patients financial assistance to access medicines and may use extraordinary collection actions."

Many 340B hospitals “may not offer low-income patients financial assistance to access medicines and may use extraordinary collection actions, including but not limited to, liens, foreclosures, and civil actions when patients fail to pay bills,” a pharmaceutical-industry funded study released

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With Screws Tightening on 340B Contract Pharmacy, More Health Centers Plan to Open their Own

a pharmacist scanning a barcode on a pill bottle
One-third of health center leaders whose centers do not have an on-site pharmacy say they plan to open one in the next three years, a survey by 340B pharmacy management company Maxor 340B found.

One-third (33%) of community health center (CHC) senior executives whose organizations do not currently have an on-site pharmacy plan to open one in the next three years, a new survey shows.

340B pharmacy management company Maxor 340B released the survey

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U.S. Uninsured Rate Dipped Slightly in 2021 to 9.2% but Rates for Hispanics and Blacks Remain High

bar chart showing percentage of U.S. population uninsured and insured by age group
The U.S. uninsured rate fell slightly in 2021 to 9.2%, down from 9.7% in 2020, new data from the National Center for Health Statistics (NCHS) show.

The U.S. uninsured rate fell slightly in 2021 to 9.2% (about 30 million people), down from 9.7% (about 31.6 million people) in 2020, the National Center for Health Statistics (NCHS) reports.

NCHS released this and related health insurance coverage findings earlier

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GOP-aligned Think Tank Alleges that 340B Expansions Contributed to Drug Spending Spurts

graph of per capita spending on retail prescription drugs
The American Action Forum says "it is worthwhile to consider whether" there is a link between the implementation of 340B policies and upswings in retail drug spending. A drug policy experts who found that that inflation penalties in the 340B program were associated with lower annual drug price increases says AAF's analysis "is specious at best."

An American Action Forum (AAF) data analysis that connects increases in consumer drug spending with the introduction of 340B drug discount and Medicaid drug rebate program policies “is spurious at best,” says an expert on prescription drug costs whose research

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Survey: Hospitals’ Losses from 340B Contract Pharmacy Restrictions Ballooned During Q1 2022

Annualized losses due to contract pharmacy restrictions December 2021 vs. March 2022 comparison
340B hospitals' annualized losses due to drug makers contract pharmacy restrictions grew sharply during Q1 2022, a survey found.

The financial impact to 340B hospitals due to drug manufacturers’ restrictions on contract pharmacy more than doubled between December 2021 and March 2022, a new survey shows.

Hospital trade group 340B Health said the median annualized loss of contract pharmacy

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340B Hospitals’ Pharmacies and Child Sites Often Located in Richer, Less Diverse Areas, Study Finds

bottles of drugs on pharmacy shelves
Avalere Health says it found that 340B DSH hospitals’ contract pharmacies and child sites often are in richer and less diverse places where more residents have health insurance compared with the hospitals’ own locations.

340B disproportionate share (DSH) hospitals’ contract pharmacies and child sites often are in richer and less diverse places where more residents have health insurance compared with the hospitals’ own locations, according to a new study.

Healthcare consulting firm Avalere Health

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JAMA Study Finds Prominent Cancer Centers With 340B Connections Mark Up Infused Drugs Significantly

New research in JAMA Internal Medicine says many NCI-designated cancer centers—most of which are affiliated with 340B hospitals—mark up the price of infused cancer therapies for patients with private insurance “substantially." 340B groups point out that the rates are negotiated and they need the revenue for their safety net mission.

Many National Cancer Institute (NCI) designated cancer centers—most of which are affiliated with 340B hospitals—mark up the price of infused cancer therapies for patients with private insurance “substantially,” according to new research in JAMA Internal Medicine. Hospital groups have pointed

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Harvard Drug Policy Experts Write in JAMA About How Congress Could Fix 340B Contract Pharmacy Mess

screenshot of 340B drug pricing program article in JAMA
"Contract pharmacy restrictions are the latest problem with implementation of the 340B program that threaten to undermine its laudable goals," three Harvard drug policy experts say in an opinion article in JAMA.

A nationally prominent drug policy expert and two colleagues at Harvard Medical School have written in JAMA how Congress could end the fight over 340B contract pharmacy and enhance 340B program integrity.

“First, Congress could explicitly allow the participation of

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Drug Makers’ 340B Pricing Restrictions Hit Small Rural Hospitals Especially Hard, Survey Shows

This Hospital is closed sign
About two thirds (64%) of CAHs and one third (33%) of larger, more urban hospitals say their ability to keep their doors open would be affected if drug company 340B contract pharmacy restrictions become more widespread.

Small rural hospitals have lost on average 39% of their 340B contract pharmacy savings due to drug manufacturers’ conditions on 340B pricing while larger, mostly urban hospitals have lost on average 23%, a hospital group’s member survey shows.

The finding

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