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Lax oversight by the federal government is causing drugmakers to pay discounts for the same drug twice, according to a new report released this week from the U.S. Government Accountability Office.

The federal government isn't doing a good job of determining whether a drug company has to provide both 340B discounts and rebates for Medicaid, a federal watchdog said.

WASHINGTON – New research from the Employee Benefit Research Institute (EBRI) has concluded that payments from private third-party payers for infused cancer medicines are, on average, twice as much when care is provided in hospital outpatient departments (HOPDs) compared with physician offices (POs). In fact, the findings demonstrate that on a medication- by-medication basis, HOPDs charged up to 4.3 times more than physician offices for the same cancer treatment. Notably, the disparity is due to hospital pricing practices and not the quality of care provided or progression of the disease, according to the issue brief.

A new report from the Government Accountability Office (GAO) has concluded increased oversight is needed to ensure nongovernmental hospitals meet 340B eligibility requirements.

Government watchdog finds lax oversight of 340B discounts

Community oncology practices hold a prominent spot in our state. They provide personalized care because physicians, nurses and other practice staff have the ability to develop ongoing relationships with their patients as they go through treatment.

Nearly 27.4 million people across the country have no health insurance, and about 147 million more have inadequate health insurance, according to an analysis by the Kaiser Family Foundation in 2017. This means that more than half of the American population experiences some form of health care insecurity and therefore may not be receiving proper medical care. To alleviate this problem, the 340B program was created in 1992 to aid vulnerable and uninsured Americans by reducing health care costs.