by Admin | July 17, 2017 3:00 pm
[1]July 17, 2017 — More than $457 billion is spent on prescription drugs in America annually. Access to healthcare, however, remains a struggle for many Americans. The 340B drug discount program[2] ensures that low-income, Medicaid, uninsured, and underinsured patients can get necessary treatment for medical conditions. These discounts cost taxpayers zero dollars. 340B lets America’s safety-net hospitals access prescription medicines at a discount. Hospitals use the money they save to reduce prices for patients, provide uncompensated care, and remain operational despite lower Medicaid reimbursement for healthcare services.
To put it in context, roughly 78 percent of the 1,300 critical access hospitals in the U.S. rely on 340B. 340B DSH hospitals, meanwhile, treat a disproportionate share of low-income patients, serving 64 percent more Medicaid and low-income Medicare patients, and more than 60 percent more low-income cancer patients than non-340B hospitals.
In its continued interest in transparency, 340B Health[3], the association of more than 1,300 340B hospitals, today released two reports: The first report[4] assesses 340B’s financial impact on the drug industry. The second report[5] evaluates the value of contract pharmacies for 340B hospitals and their patients. (Click here[6] for an overview of the first report and here[7] for an overview of the second.)
“We hope the Trump administration and Congress pay close attention to these important studies,” said 340B Health President and Chief Executive Officer Ted Slafsky. “They show 340B discounts aren’t burdening drug manufacturers, aren’t pulling from taxpayer dollars or shifting costs to other payers, and are generating funds hospitals desperately need to cover unreimbursed costs, provide services to low-income and rural patients, and, in some cases, keep their doors open.”
Other Manufacturer Discounts and Programs Trounce the 340B Discount
The first report revealed the 340B program represents a small fraction of promotional spending and discounts by manufacturers. Discounts for for-profit health plans and pharmacy benefit managers are far greater than 340B, yet recent industry-sponsored reports failed to put this in perspective.
Contract Pharmacies Are Critical to 340B Hospitals
The second report outlined how hospitals rely on their contract pharmacy benefit. Disproportionate share (DSH) hospitals reported focusing on using their contract pharmacy benefit to support uncompensated care and provide direct services to low-income patients. Rural hospitals were more likely to report using their benefit to maintain access to care, namely by maintaining operations and keeping their doors open.
“These reports unequivocally demonstrate how 340B hospitals provide significantly higher levels of care to low-income patients without tapping into taxpayer dollars, to reach the most vulnerable people in our communities,” added Slafsky. “At a time when we face unprecedented health care challenges, it is important for our leaders to avoid cutting a hole in the strongest safety net for patients in our urban and rural communities.”
Source URL: https://340binformed.org/2017/07/studies-confirm-340b-helps-hospitals-serve-low-income-and-rural-patients-without-raising-drug-prices/
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