Hospitals in the 340B program receive discounts on manufacturer’s average sales price, but Medicare reimburses them at the same rate as non-340B hospitals. When DSH percentage exceeds 11.75%, hospitals become eligible for the 340B program. “With 340B program discounts, reference products could be relatively more profitable than biosimilars,” the authors explained. The role of financial incentives in biosimilar uptake In Medicare: evidence from the 340B program. Steinzor P. Nicolas Ferreyros: there is growing recognition the 340B program is “out of control.” The American Journal of Managed Care.

Source: New York Times June 01, 2023 20:52 UTC