Risks to the 340B drug pricing program related to manufacturer restrictions on drug availability

JAMA

15 April 2022 - On 21 March 2022, Johnson & Johnson became the 16th pharmaceutical manufacturer to restrict the delivery of discounted drugs to external pharmacies connected with health care centers (including clinics and safety net hospitals) covered under the 340B Drug Pricing Program. 

Created by Congress in 1992, the 340B program requires manufacturers participating in Medicaid to sell drugs at substantial discounts to covered entities, which can then charge non-discounted prices to payers. The revenue derived by the 340B centers through this arrangement is intended to subsidise the care the centers provide, including the provision of low-cost medications.

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Michael Wonder

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Michael Wonder

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Medicine , US , Pricing , Medicaid , Supply