What’s Your 340B Exposure?

What’s Your 340B Exposure?

The federal 340B Drug Pricing Program (340B program), created in 1992, requires drug manufacturers to provide outpatient drugs to eligible healthcare organizations at significantly reduced prices.  The intent of the program is to give financial relief to organizations providing healthcare to patients who are uninsured or underinsured.   

According to the U.S. Department of Health and Human Services, the program “enables covered entities to stretch scarce Federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.”  The program promotes:

  • Access to affordable medications
  • Efficient business practices
  • Outcomes-driven pharmacy services
  • Quality assurance

Getting therapy to those who need it most is a program we can all stand behind.  But, how do we ensure the program is really meeting its intent?  How do we ensure prescription drugs are getting to eligible organizations and eligible patients?

To make the most of 340B program exposure, pharma manufacturers can:

  • Carefully examine recent 340B chargeback reports.  Look for trends that may indicate utilization issues.
  • Limit unnecessary exposure by mandating an appropriate supply chain solution.  Specialty pharmacies do not qualify for 340B pricing, while certain hospital and clinic pharmacies may qualify.  Controlling the access points may reduce non-essential exposure.

Knowing that an estimated 3-10% of healthcare spending is lost to fraud* certainly warrants a proactive checkup of who is receiving your product.

Interested in helping with valuable research to quantify the full exposure of price reduced pharmaceuticals?  Contact me

*Source:  Healthcare in 2020, Steve Jacob