340B Program Growth to $81B May Trigger Federal Reforms Affecting Medicaid DSH Hospitals

The 340B drug discount program reached $81.4 billion in 2024, with disproportionate share hospitals accounting for 78% of purchases. Many DSH hospitals also participate in Medicaid managed care, and pending federal reforms—including the 340B Rebate Model pilot and congressional bills—could reshape how these entities finance care for Medicaid beneficiaries. The program now exceeds Medicaid drug spending, making potential policy changes significant for state programs and MCOs contracting with 340B-eligible providers.

Pharmacy

This is outside commentary from Avalere, not part of Medicaid Monitor's independently scored news coverage.

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