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HOSPITALS, INSURERS, PHARMACY BENEFIT MANAGERS, GOVERNMENT GET 50% OF DRUG SPENDING

https://bit.ly/2Hns0tE

Lawrenceville, NJ (Dr Charles Simone) – According to the Berkeley Research Group, 50% of the money spent on brand name medicines in 2018 went to hospitals, health insurers, pharmacy benefit managers, the government, and others – increasing from $24.7 billion to $48.6 billion between 2013 and 2018.  This increase is mainly due to the 340B Program started in 1992 by Congress for indigent patients that has grown 9 times larger in 2018 than in 2013.  The 340B program compels Big Pharma to provide large discounts on medicines to designated Disproportionate Share Hospitals and clinics as a condition of their drugs being covered by Medicaid.  However, some designated hospitals and clinics take advantage of the program.

80% of 340B dollars go to Disproportionate Share Hospitals, even though Disproportionate Share Hospitals are 9% of 340B entities

45% of all Medicare acute care hospitals participate in 340B

64% of hospitals have charity care rates below 2.2% of the national average for all hospitals.

© Charles B. Simone, M.MS., M.D.