HHS Official Defends Plan to Narrow 340B Payment Gap
In an opinion piece, an HHS leader argues that the 340B drug discount program has drifted from its original purpose, becoming "a large institutional subsidy with expensive unintended consequences" rather than the targeted safety-net support Congress intended in 1992. The author contends that because Medicare, Medicaid, and commercial insurers typically reimburse 340B hospitals at full price despite steep manufacturer discounts, hospitals keep the spread, sometimes resulting in Medicare patients owing more in coinsurance than the hospital actually paid for the drug. The piece previews HHS's intent to propose changes narrowing this reimbursement gap. The commentary does not specify the exact regulatory mechanism or timeline for the proposed fix.