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Pharma-backed report targets federal clinics for benefiting financially from 340B drug discounts

May 23, 2023


The report is the latest salvo between drugmakers and covered entities like hospitals and clinics over the 340B drug discount program, which requires pharmaceutical companies to give discounts on outpatient drugs for providers serving low-income communities.

Such providers usually have narrower margins, meaning the drug discounts from the program, which was established in 1992 to lower drug prices for safety-net providers, can be a financial aid.

Pharmaceutical groups have been increasingly critical of the 340B discounts, which can range from 25% to 50% of the cost of the drugs, cutting into profits. Drugmakers say the program doesn’t require hospitals to account for their savings or ensure they’re reinvested in patient care, a complaint shared by some lawmakers.

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