Drug Discounts for Prisoners Crucial for State Budgets

States could miss out on tens of millions of dollars in savings if a federal drug discount limits its use for inmates in state jails and prisons.

The program, called 340B, requires drug manufacturers to give discounts to hospitals with primarily low-income patients. State prisons and jails spend from 12 percent to 32 percent of their health-care budgets on drugs, according to Pew Charitable Trusts, an independent research organization.

Through partnerships with local facilities covered by 340B, state governments are saving tens of millions of dollars on drugs for their prisoners. Last year alone, Texas saved $90 million when it ...