Drug Discount Plan Remains Target for Possible Legislation (1)

Some members of Congress might push for more transparency about how hospitals use their federal drug discount program savings after a study by a government watchdog, attorneys say.

The 340B program requires drugmakers to discount drugs for covered entities—qualifying hospitals, clinics, and providers—that treat low-income Medicare and Medicaid patients, as measured by each hospital’s disproportionate share hospital (DSH) adjustment percentage.

Under the program, drugmakers participating in Medicaid agree to provide outpatient drugs to those qualifying providers at significantly reduced prices.

The House Energy and Commerce Committee asked the General Accountability Office to review the process used by the Health Resources ...