Show-Me State Times

Connie Farrow, principal of Connie Farrow Communications, said that the 340B Drug Pricing Program, designed to assist vulnerable patients in accessing discounted outpatient drugs, is a significant federal initiative deserving of review. She expressed this view in an op-ed on April 7.

"The 340B Drug Pricing Program is one program that deserves review," said Farrow. "The 340B program is one of the largest prescription programs administered by the federal government. It was intended to help our most vulnerable patients access treatment through steep discounts on outpatient drugs."

The Health Resources & Services Administration (HRSA) reported that the 340B Drug Pricing Program was established by Congress in 1992 and is administered by HRSA. The program mandates drug manufacturers participating in Medicaid to offer discounted outpatient drugs to eligible healthcare providers. These savings enable providers to extend services to underserved and vulnerable patient populations.

According to 340B Health, the total value of drug purchases through the 340B Drug Pricing Program reached $66.3 billion in 2023, marking a 24% increase from the previous year. This rise is attributed to the growing use of high-cost specialty medications for treating complex and chronic conditions, which now constitute a significant portion of dispensed drugs. The increase also reflects broader healthcare trends, particularly the shift from inpatient to outpatient care settings, resulting in a larger volume of prescriptions covered by the 340B program.

Schaeffer noted that from 2000 to 2020, there was a substantial growth in the number of covered entity sites participating in the program, expanding from approximately 8,100 sites to over 50,000. This expansion was partly driven by including new healthcare providers such as Critical Access Hospitals (CAHs) and other safety-net providers following the 2010 expansion of eligibility criteria. By 2020, hospitals comprised just over 60% of total covered entity sites, indicating their status as the largest group of participants in the program.

Connie Farrow owns Farrow Communications, LLC, where she works to help people better understand complex issues impacting their daily lives. A graduate of the Missouri School of Journalism, she has contributed to various publications including The Southeast Missourian, Sedalia Democrat, Springfield News-Leader, USA Today, and The Associated Press. As a seasoned communicator dedicated to making intricate topics more accessible to the public, her work has been recognized by Columbia Missourian.