My Wall Street Journal Op-Ed about the 340B Program (rerun)

This week, I’m rerunning some popular posts while I prepare for this Friday’s video webinar: Drug Channels Outlook 2021.

The 340B program will be a major issue in 2021. I expect manufacturers to escalate their challenges to the contract pharmacy elements of the program. Meanwhile, covered entities will be battling manufacturers, state Medicaid programs, their contract pharmacy partners, and perhaps even HRSA itself. I'll share my thoughts on the latest developments during this Friday's webinar.

In the meantime, please enjoy my op-ed from September, which focuses on how 340B warps *prescription* prices (not drug list prices) and patient out-of-pocket costs. ICYMI, here are some clarifying comments on federally-qualified health centers (FQHCs).

Click here to see the original post and comments from September 2020.


Last Friday, The Wall Street Journal published my opinion piece: The Federal Program That Keeps Insulin Prices High. The article text is pasted below for those who don't subscribe.

I summarize issues with the role of contract pharmacies in the 340B Drug Pricing Program. My arguments will be familiar to regular readers of Drug Channels. I wrote this piece for a general business audience, so it's highly readable and omits industry insider terminology. To help you get the most from the article, I have included additional links to source materials in the text.

Note that my commentary focuses primarily on hospitals, which account for the vast majority of 340B program sales. Federal grantees are more likely to pass discounted 340B prices to needy patients. However, grantees should consider my warning from 2014: The good apples—the 340B entities that require additional financial support to support needy patients—should be worried that the bad ones could rot away the program for everyone.

Please share your comments below and I'll respond where appropriate.

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