Health Reform Will Cost Cancer Patients
In an effort to offset cost increases associated with the Affordable Care Act (ACA), the Obama administration intends to expand hospitals' access of the 340B discount drug plan. While the expansion may sound promising to some, many others worry that the program will threaten the quality of care, as increased participation risks higher potential for abuse. Even worse, the 340B program will likely rise the cost of cancer care.
In an effort to offset cost increases associated with the Affordable Care Act (ACA), the Obama administration intends to expand hospitals’ access of the 340B discount drug plan. While the expansion may sound promising to some, many others worry that the program will threaten the quality of care, as increased participation risks higher potential for abuse. Even worse, the 340B program will likely
Only weeks ago The American Journal of Managed Care
Originally created in 1992 under President George H. W. Bush, the 340B law requires pharmaceutical manufacturers to provide discounted medications to hospitals, specifically those like safety net facilities that provide care to large populations of low-income
“[The] 340B [program] is not about drug discounts for disadvantaged patients,” Bruce Siegel, MD, MPH, president and CEO of America’s Essential Hospitals,
However, abuse of the program under the ACA is only expected to grow. Hospitals like Duke University Health System madea profit of $76.9 million off the discount program, when only about 5% of their 340B program patients were uninsured. Because the program will now include cancer center coverage under the health reform act, eligible hospitals are buying private oncology practices in order to obtain expensive cancer drugs at a discount. Moving cancer prescriptions under the 340B program can generate an additional $1 million profit for hospitals, but mean little in savings for cancer patients.
This shifting of care also means that more patients are seeking treatment in hospitals, driving up Medicare payments towards hospitals, and reducing those made to private practices. Between 2005 and 2011, chemotherapy delivery in doctor’s offices fell 20%, while the share of Medicare payments for hospital-delivered chemotherapy increased nearly 30%.
“The 340B program doesn't print free money. The cost of the discounts are foisted onto patients and insurers, who are forced to pay higher prices that drug makers establish to offset the cost of the forced discounts,”
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