AMCP Conference Panelists Criticize ‘Perverse Incentives’ of 340B Program
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Apr 10, 2025
The “hottest topic” in health policy is also the one that is “ripe with perverse incentives” that can enrich companies: the 340B program, according to panelists at the 2025 Academy of Managed Care Pharmacy (AMCP) conference, held March 31 through April 4 in Houston.
“We can argue about the purpose and the intent of the program all day, but nobody is going to say that the purpose of 340B was to benefit plans and PBMs,” said Alan Arville, member of law firm Epstein Becker Green.
Established by statute in 1992, the 340B program allows covered entities that serve uninsured and low-income patients, such as safety net hospitals, to purchase drugs from manufacturers at steep discounts for outpatient use. Covered entities can stretch their resources to provide more services to vulnerable populations. Providers covered by 340B can pass the discounts to patients at the pharmacy counter or pocket the savings. They can also dispense the medications at a higher cost to the patient or the patient’s insurance.
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