Azar calls for changes in 340B drug pricing program

HHS Secretary Alex Azar on Monday called for more oversight of hospitals that get drug discounts under the federal 340B program. "By one estimate, discounted purchases under 340B totaled $16 billion in 2016 — a fourfold increase just since 2009," Azar said at the annual meeting of 340B Health, a trade group for 340B hospitals.

HHS Secretary Alex Azar on Monday called for more oversight of hospitals that get drug discounts under the federal 340B program. "By one estimate, discounted purchases under 340B totaled $16 billion in 2016 — a fourfold increase just since 2009," Azar said at the annual meeting of 340B Health, a trade group for 340B hospitals. "This growth has occurred without any increase in statutory oversight," he continued. Azar called for two kinds of reforms for the 340B pricing program: "greater transparency surrounding how these discounts are being used, and reforms to reduce the gap between discounted prices and the reimbursement provided, particularly by government programs."