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American Focus > Blog > Health and Wellness > California developers target 340B drug discounts, AIDS Healthcare Foundation
Health and Wellness

California developers target 340B drug discounts, AIDS Healthcare Foundation

Last updated: October 18, 2024 1:59 am
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California developers target 340B drug discounts, AIDS Healthcare Foundation
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Apartment builders in California are spearheading a push to reform the 340B Drug Discount Program, a little-known but significant source of revenue for nonprofit hospitals and health clinics. The program, created under a specific sub-section of the law, provides discounts on drugs for providers that serve a large number of low-income patients.

While the exact discounts provided by the 340B program are not publicly disclosed, the Government Accountability Office estimates them to range from 20% to 50% off drug prices, with some estimates suggesting even higher discounts. Health care providers participating in the program can charge insurers the full market price for these drugs and retain the difference, without any restrictions on how they use the profits.

The 340B program has come under scrutiny for its lack of transparency and oversight, leading to calls for reform from various stakeholders. Apartment builders in California are now entering the fray, advocating for changes to the program that would ensure greater accountability and equity in the distribution of discounts.

The proposed reforms are expected to generate debate and discussion among policymakers, health care providers, and patient advocacy groups. As the vote on the policy proposals approaches, the outcome could have far-reaching implications for the future of the 340B program and the healthcare industry as a whole.

For more in-depth analysis and exclusive content on this topic, readers can subscribe to STAT+ to access the full article and stay informed on developments in Capitol Hill and the life sciences industry. Unlocking this article will provide valuable insights and intelligence that can help navigate the complex landscape of healthcare policy and regulation.

See also  STAT Health News: Failed long Covid drug, diabetes and exercise
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