Impact of President Trump’s proposed 340B hospital eligibility threshold

Nikpay, Bach, Conti
May 11, 2018

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 eligiblity.

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