29 Jun 340B in 2020: Rampant Dysfunction, or a Crucial Support System?
In June 2020, the Health Resources and Services Administration (HRSA) reported that net purchasing volume under the 340B program in 2019 was at least $29.9 billion. This accounts for purchases made through wholesalers and excludes direct-from-manufacturer and some specialty distributor purchases – the total volume is therefore higher. To provide some context for this figure, according to analysis by Drug Channels, it:
- is 23% higher than corresponding 2018 volume
- is over 330% higher than corresponding 2014 volume
- rivals the total volume of outpatient drugs paid for under the Medicaid program
- accounts for 8.3% of total US net prescription drug sales
- implies total 340B discounts on the order of $28 billion off of list price for branded drugs, or 16% of all gross-to-net price discounts provided on branded drugs