MPH’s Nikpay comments on the 340B drug discount program
Federal health officials say a controversial program that allows hospitals to purchase drugs at deep discounts needs some fixing.The Centers for Medicare and Medicaid Services, or CMS, worry hospitals are playing fast and loose with what’s known as the 340B program by buying more expensive drugs than they have to, putting the squeeze on Medicare recipients.
“The assumption is that these hospitals will use the difference from that sale to funnel money back into safety net operations,” said Vanderbilt University economist Sayeh Nikpay. “Things like running a discounted drug program or running a free HIV/AIDS clinic.”