The 340B program was initiated in 1992 by the US Congress to allow participating hospitals to generate additional revenue by purchasing certain drugs used for outpatient care at an approximately 22% discount while charging payers the full price.1,2 The program was designed to support hospitals caring for uninsured patients and low-income patients with Medicare and Medicaid coverage, allowing the hospitals to reach “more eligible patients” and provide “more comprehensive services.”2(p3) Although the 340B program was initially targeted to a select group of hospitals, participation has swelled, owing to expanded eligibility in 2004 and 2010 and the program’s popularity.1
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Nikpay S, Buntin M, Conti RM. Diversity of Participants in the 340B Drug Pricing Program for US Hospitals. JAMA Intern Med. 2018;178(8):1124–1127. doi:10.1001/jamainternmed.2018.2015
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