Drug industry vendor Kalderos says duplicate 340B discounts and Medicaid rebates cost the industry between $933 million and $1.6 billion in 2019.

Kalderos: 3-5% of 340B Discounts and Medicaid Rebates Are Duplicates

Between 3% and 5% of 340B drug discounts and Medicaid drug rebates are duplicates, adding up to at least $933 million and potentially as high as $1.6 billion in additional costs to the pharmaceutical industry in 2019, according to new report by Kalderos. Kalderos is a drug discount management company that works on behalf of pharmaceutical companies to reduce its costs and find what it believes to be compliance concerns and inefficiencies in the supply chain.

The Chicago-based company recently announced it would offer a service, 340B Pay, to let drug manufacturers provide 340B pricing for drugs dispensed by contract pharmacies in the form of a back-end rebate. Covered entities could opt to keep getting up-front 340B discounts, but only for drugs they themselves dispense. The idea has received tremendous pushback from 340B provider groups and no drug companies are known to have adopted 340B Pay at this time.

Between 3% and 5% of 340B drug discounts and Medicaid drug rebates are duplicates, adding up to at least $933 million and potentially as high as $1.6 billion in additional costs to the pharmaceutical industry in 2019, according to new report by Kalderos. Kalderos is a drug discount management company that works on behalf of pharmaceutical companies to reduce its costs and find what it believes to be compliance concerns and inefficiencies in the supply chain.

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