The 340B program is well-intentioned, but its design—funding institutions over patients—has led to widespread abuse and system manipulation.
Most government support programs provide benefits directly to people, whether it is SNAP (Supplemental Nutritional Assistance Program), TANF (Temporary Assistance for Needy Families), or housing voucher benefits. But when it comes to healthcare, our government provides healthcare benefits by paying institutions, not patients. Shouldn’t funds follow the patient – not the system?
An example of this unique approach are the discounts given to hospitals rather than patients under the 340B drug discount program. The program, which requires manufacturer discounts on most drugs administered in outpatient settings to help safety-net providers, is under intense scrutiny in Congress.
All sorts of adverse incentives arise because the healthcare system prioritizes intermediaries over patients.
Wayne Winegarden is a senior fellow in business and economics at the Pacific Research Institute. Anthony DiGiorgio is an assistant professor of neurological surgery and faculty in the Philip R. Lee Institute for Health Policy Studies at UCSF.
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.
The 340B drug discount program is well-intentioned, but must be reformed
Wayne H Winegarden
The 340B program is well-intentioned, but its design—funding institutions over patients—has led to widespread abuse and system manipulation.
Most government support programs provide benefits directly to people, whether it is SNAP (Supplemental Nutritional Assistance Program), TANF (Temporary Assistance for Needy Families), or housing voucher benefits. But when it comes to healthcare, our government provides healthcare benefits by paying institutions, not patients. Shouldn’t funds follow the patient – not the system?
An example of this unique approach are the discounts given to hospitals rather than patients under the 340B drug discount program. The program, which requires manufacturer discounts on most drugs administered in outpatient settings to help safety-net providers, is under intense scrutiny in Congress.
All sorts of adverse incentives arise because the healthcare system prioritizes intermediaries over patients.
Read the entire op-ed in Daily Bulletin.
Wayne Winegarden is a senior fellow in business and economics at the Pacific Research Institute. Anthony DiGiorgio is an assistant professor of neurological surgery and faculty in the Philip R. Lee Institute for Health Policy Studies at UCSF.
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.