CBO Report Says 340B Program Spending Up Nearly 20 Percent a Year From 2010 to 2021

Government spending on the 340B Drug Pricing Program rose almost 20 percent per year from 2010 to 2021, spiking from $6.6 billion to $43.9 billion, with 88 percent of the growth attributed to hospitals and their affiliated off-site clinics, not federal grantees, says a report from the Congressional Budget Office (CBO). 

Most of the spending — 70 percent — was for cancer drugs, anti-infectives, and immunosuppressants, said the CBO, reporting at the annual conference of the American Society of Health Economists on Monday. The report used data from the Health Resources and Service Administration (HRSA), which oversees the 340B program.

In the 340B program, drug manufacturers sell drugs at discounted prices to participating hospitals and federal grantees. Created in 1992 to stretch scarce federal resources and help covered entities provide low-income and uninsured patients with increased access to care and life-saving drugs, the program has had longstanding challenges due to a lack of regulatory infrastructure, administrative controls and legislative guidance.

To read the whole story, click here.

Related Topics