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Impact of President Trump's Proposed 340B Hospital Eligibility Threshold

Research tells us 9% of hospitals would lose their 340B eligibility under Trump's drug pricing plan. Essentially all are in Medicaid expansion states.
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Originally published on 05/11/2018

The 340B drug discount program has been a frequent target of policymakers, as hospitals that qualify can generate a large amount of profit by obtaining drugs at a discount then charging patients and payers rates the retail rate.

President Trump's speech "Blueprint to Lower Drug Prices" proposed several reforms to limit the profit-seeking behavior in Medicaid's 340B program, one of which was to require that 340B hospitals provide charity care that totals 1% or more of their patient revenue to continue qualifying for outpatient drug discounts. Under this criteria, our analysis shows that only 1% of hospitals located in states that did not expand Medicaid and 13% of expansion states would lose their eligibility.

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