Posted May 1, 2021

340B Drug Pricing Program: Analysis Reveals $40 Billion in Profits in 2019

The 340B Drug Pricing Program has experienced extraordinary growth over the
past 10 years, propelled by a potent mixture of regulatory, legislative, and
technology changes. There is strong bipartisan support for 340B and recognition
that for better or worse, 340B has become a critical source of income for many rural
hospitals, community clinics, and other eligible providers. By definition, at its most
basic level, the program is an income transfer from pharmaceutical firms and
possibly others—including insurers and patients—to covered entities.

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