STUDY LINKS 340B EXPANSION WITH HIGHER ACA PREMIUMS
The following information was released by the
Findings suggest an unintended consequence of 340B expansion is an association with ACA benchmark premium increases estimated at over
Mon,
For Immediate Release:
"The Association of the 340B Program With Affordable Care Act (ACA) Premiums: A Longitudinal Analysis From 2018-2022" provides evidence of the impact of the 340B program on ACA premiums and the corresponding burden it places on taxpayers and enrollees. The study is authored by
The 340B program requires pharmaceutical manufacturers participating in Medicaid and Medicare Part B to sell discounted outpatient drugs to 340B covered entities. Originally, covered entities primarily included disproportionate share hospitals and federal grantees. However, following the enactment of the ACA in 2010, enrollment in the 340B program ballooned to encompass thousands of covered entities and hospital child sites (e.g., outpatient clinics and treatment centers associated with the covered entity). Other research suggests that 340B covered entity child sites are often located in higher-income areas with high numbers of well-insured patients.
"It's important to understand the impact of the significant expansion of covered entities and child sites in the 340B program, given that most 340B covered entities sell these discounted drugs at higher rates to insurers," explained
The researchers conducted a longitudinal analysis of ACA benchmark premiums across 3,043
Over the course of the study period, each one-unit change in HSD was associated with a 1.1% change in the benchmark ACA premium.
After adjusting for per capita income, hospital concentration index, and other factors, the mean 340B HSD accounted for 1.8% of ACA Silver Benchmark Plan monthly premiums equivalent to
Applying the 1.8% estimate to the subsidy base implies that roughly
In counties with a higher proportion of 340B hospitals and hospital child sites, researchers found ACA premiums to be 5.7% higher compared with those in less concentrated counties, translating to a
This study adds to a growing body of research that 340B program expansion increases healthcare costs. Previous research captured the relationship of growth of the 340B program to increases in employer-based health insurance premiums: 340B expansion accounted for 8% of the overall growth in employer insurance premiums between 2017 and 2023, translating to roughly
"Our latest work adds to the body of evidence showing that the 340B program is not 'costless,'" said
"Beyond the Sloganeering: A Data-Driven Analysis of Recent 340B Growth" in
"The 340B Drug Purchasing Program and Commercial Insurance Premiums," a white paper from
"30+ Years of 340B: What Does the Evidence Say?" an NPC Policy and Evidence Brief
"The Association of 340B Program Drug Margins With Covered Entity Characteristics" in INQUIRY
About the
NPC serves patients and society with policy-relevant research on the value of patient access to innovative medicines and the importance of scientific advancement. We envision a world where advances in medicine are accessible to patients, valued by society, and sustainably reimbursed by payers to ensure continued innovation.


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