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In this episode of Listening In (With Permission), Shawn Gremminger, President and CEO of the National Alliance of Healthcare Purchaser Coalitions, joins Andréa Caballero of Catalyst for Payment Reform to dive into a pressing but often overlooked issue: the impact of the 340B Drug Pricing Program on pharmacy costs for employers and healthcare purchasers.
The 340B program, originally intended to support safety-net hospitals and community health centers, has expanded drastically over the years. Today, it’s the second-largest drug purchasing program in the U.S., with an explosive $65 billion price tag. But what does this mean for employers and employees in the commercial market?
In this candid conversation, Shawn breaks down the unintended consequences of the program’s growth, including:
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How 340B has fueled market consolidation, driving up healthcare costs
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The unexpected rise in prescription costs due to drug markups and higher-priced drugs
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The impact of lost rebates on employer-sponsored healthcare plans, amounting to over $6 billion annually
Shawn also explores potential solutions, from policy reforms at the federal and state levels to practical steps that employers can take to better understand and mitigate the effects of the program.
Key Takeaways:
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Understand the history and evolution of the 340B program and its growing impact on the healthcare market.
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Learn how employers can take action by questioning PBMs and negotiating better deals with hospitals in the 340B program.
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Discover how transparency and policy reforms could help curb the financial strain caused by this rapidly expanding program.
Whether you’re an employer, healthcare purchaser, or simply curious about how public policy impacts healthcare costs, this episode will leave you with a clearer understanding of how 340B is affecting your bottom line—and what can be done about it.
Want a deeper dive? Here are some resources cited in this episode: