ARTICLE | Politics & Policy

Group calls on Congress to limit hospital 340B eligibility

March 26, 2014 12:30 AM UTC

Congress should restrict the eligibility criteria for hospitals to participate in Medicare's 340B drug discount program, according to a report from the Alliance for Integrity and Reform of 340B (AIR 340B). The 340B program requires manufacturers to give deep discounts on outpatient drugs to hospitals and clinics that provide healthcare to low income and other special populations.

Hospitals qualify for 340B based on a measure of Medicaid and low-income Medicare patients treated at a hospital called disproportionate share hospital (DSH) percentage. In contrast, non-hospital entities typically must show that they provide services to vulnerable, uninsured patients and are required to reinvest revenues derived from the program into services for that population. ...