Trump Proposes 340B Drug Discount Reform to Boost Patient Savings
The Trump Administration has proposed a significant reform to the 340B drug discount program. The 340B Rebate Model Copilot Program aims to eliminate abuse and enhance accountability, ensuring hospitals serving low-income and uninsured populations pass savings to patients.
The current 340B program, established in 1992, provides discounted pharmaceuticals to eligible hospitals. However, it has not fully delivered its intended benefits due to lack of oversight and hospitals retaining discounts instead of passing them on to patients.
The proposed copilot program targets high-cost drugs, including insulin products and specialty drugs, to close these gaps. It shifts from upfront discounts to hospitals to a system requiring them to file claims for retroactive rebates. This change aims to create a paper trail, preventing hospitals from 'double-dipping' on discounts and improving auditability.
The Trump Administration's proposal mirrors successful federal drug pricing programs, such as the Medicaid Drug Rebate Program of 1990 and the Department of Veterans Affairs Federal Supply Schedule. It seeks to bring drug price relief to everyday Americans without using price controls or violating patent rights.
The Trump Administration's 340B Rebate Model Copilot Program, if implemented effectively across all drugs in the 340B program, could significantly improve the efficiency and fairness of the drug discount system. It targets hospital profiteering and ensures that the intended benefits of the program reach the patients who need it most.
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