Impact of President Trump's proposed 340B hospital eligibility threshold - Drug Pricing Lab

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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