USA's 340B Drug Discount Program 'needs more oversight,' says BIO

The US Biotechnology Industry Organization’s (BIO) Laurel Todd shared concerns that the 340B program has departed significantly from its original intent, leading to evidence of abuse and potentially harmful consequences for patients.

The 340B Drug Discount Program is a US federal government program created in 1992 that requires drug manufacturers to provide outpatient drugs to eligible health care organizations/covered entities at significantly reduced prices.

“The original intent of 340B was to support the most vulnerable patients; clearly that is not the focus for many of the participants in the program now,” said Ms Todd, managing director, reimbursement and health policy at the BIO. She pointed to three primary reasons the program needs more oversight: Exponential growth, significant violations revealed in audits, and lax oversight.