Circuit Courts, State Laws to Test Drug Discount Program in 2024

A federal program created more than 30 years ago to provide discounted drugs to low-income and uninsured patients is set for a handful of circuit court decisions in 2024 that could alter its landscape.

Congress created the 340B Drug Pricing Program in 1992 to allow covered entities such as qualifying safety-net hospitals, clinics, and other providers to buy outpatient drugs at discounted prices from manufacturers participating in Medicaid to offset rising drug prices. The program is named for Section 340B of the Public Health Service Act. The discounts, which average 25% to 50%, allow providers to offer uninsured and underinsured ...