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Dr Neil Minkoff Explains How 340B Impacts Pharmacies and Payers Differently

All stakeholders stand to gain from the 340B program in different ways, but they also take on different risks, like the potential impact for health plans on rebate contracts, said Neil Minkoff, MD, chief medical officer of EmpiraMed.


All stakeholders stand to gain from the 340B program in different ways, but they also take on different risks, like the potential impact for health plans on rebate contracts, said Neil Minkoff, MD, chief medical officer of EmpiraMed.

Transcript (slightly modified)

How does the 340B program impact stakeholders differently?

All the different stakeholders get different benefits and risks from participating in a 340B program. Clearly, the covered entity, which is the clinical entity that’s doing the 340B dispensing, is right at the heart of it. What they’re supposed to get out of it is an ability to raise revenue, increase their revenue, by getting reimbursed normal market prices for drugs that they’re buying at a steep discount, and use those savings to offset other forms of care for underserved or indigent populations.

The plans have only caught on recently to just the impact of 340B, and a lot of that I think is due to the massive expansion of the number of 340B pharmacies since the ACA [Affordable Care Act] was passed. So the plans are still figuring it out, but one of the things the plans want to know is, a) are these savings really providing better care in our communities or can any of those savings be shared in terms of our costs, our premiums, etc., and b) what plans are trying to understand is since 340B drugs don’t generate rebate income, how are their rebate contracts going to be implemented and affected by patients going to 340B programs. 

 
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