The 340B drug pricing program is complicated. A clinic leader and a hospital said that’s making it easy for there to be misunderstandings about if the savings are being passed onto the patient.
340B Program is Critical for Rural Hospitals
A recent article from IndianaPublicMedia.org discusses the 340B Drug Pricing Program, a federal initiative requiring pharmaceutical companies to provide discounted drugs to certain health care organizations. The program helps clinics and hospitals, particularly those serving low-income and rural populations, fund essential services such as primary care, mental health counseling, and transportation.
Alan Witchey, CEO of the Damien Center in Indiana, and Brenda Reetz, CEO of Greene County General Hospital, emphasize that the program is crucial for providing affordable health care without taxpayer funding. The process involves health organizations purchasing discounted drugs, billing insurers at standard rates, and using the difference to expand patient services.
However, proposed Indiana legislation, including Senate Bill 118 and House Bill 1003, could impose stricter reporting requirements and limit how clinics use the program’s funds. Witchey and Reetz argue these changes could reduce access to care, particularly for Medicaid patients, and threaten the financial stability of safety-net providers. Hospitals use 340B funds to sustain critical services for their communities, such as obstetrics and cardiopulmonary rehabilitation in rural areas. Advocates stress the program’s role in maintaining essential health care access and warn lawmakers to consider its impact before making changes. Read more: Several Indiana health care measures focus on the 340B Drug Pricing Program. What is it?
Article source: IndianaPublicMedia.org, Several Indiana health care measures focus on the 340B Drug Pricing Program. What is it?, March 3, 2025, written by Abigail Ruhman
