Instead of working to strengthen the law against double-dipping, over 200 lawmakers recently wrote to the Biden-Harris administration, urging it to side with the hospital lobby.
Absent from their letter was any meaningful discussion of the underlying issues with Section 340B and how to address them.
A government program may be the “nearest thing to eternal life we’ll ever see on this earth,” warned Ronald Reagan – even if it is flawed.
Section 340B of the Public Health Services Act is a case in point. Enacted over 30 years ago, that law enables certain healthcare facilities, including public hospitals and community health centers, to purchase prescription drugs at discounted prices in order to support underserved communities. As a result, every year, American hospitals receive about $50 billion in federally mandated discounts from drug companies. And drug companies must offer these discounts if they want to participate in Medicaid — the government insurance program for low-income Americans.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
Good Intentions Cannot Justify a Flawed Federal Health Policy
Daniel Kolkey
Instead of working to strengthen the law against double-dipping, over 200 lawmakers recently wrote to the Biden-Harris administration, urging it to side with the hospital lobby.
Absent from their letter was any meaningful discussion of the underlying issues with Section 340B and how to address them.
A government program may be the “nearest thing to eternal life we’ll ever see on this earth,” warned Ronald Reagan – even if it is flawed.
Section 340B of the Public Health Services Act is a case in point. Enacted over 30 years ago, that law enables certain healthcare facilities, including public hospitals and community health centers, to purchase prescription drugs at discounted prices in order to support underserved communities. As a result, every year, American hospitals receive about $50 billion in federally mandated discounts from drug companies. And drug companies must offer these discounts if they want to participate in Medicaid — the government insurance program for low-income Americans.
What could possibly go wrong?
Read the op-ed here:
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.