Thank you for sharing!

Your article was successfully shared with the contacts you provided.
man offering cash Milliman’s analysis of claims data found that while 340B hospitals on average pay $1,591 per claim for a brand medicine, on average they get reimbursed $4,673 by a commercial insurer. (Photo: iStock)

Hospitals participating in the federal 340B drug discount pricing program are getting reimbursed by payers three times the amount they initially paid for brand medicines – but there’s no requirement for them to demonstrate the additional revenue is going toward helping vulnerable people, according to an analysis conducted by Milliman, commissioned by the Pharmaceutical Research and Manufacturers of America.

The 340B program, created by Congress in 1992, is meant to give drug discounts to “safety net facilities” and other qualifying hospitals so uninsured and other vulnerable patients can get access to prescription medicines at discounted rates, the authors write in the white paper. While clinics that receive federal grants are typically required to use revenue from 340B to provide care to vulnerable communities, reinvest any additional resources into services for vulnerable patients and meet reporting requirements on use of 340B revenue, similar requirements do not apply to 340B hospitals.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

Katie Kuehner-Hebert

Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.

More from this author

BenefitsPRO Broker Expo 2021Event

The premier educational and networking event for employee benefits brokers and agents.

Get More Information


Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.