A pharmacist takes care of a customer at MAC Pharmacy in Cleveland in May. Some states are forcing drugmakers to continue to sell cheaper medications to a greater number of pharmacies through a federal drug-discount program as part of their efforts to lower prescription drug costs. (Photo by Sue Ogrocki/The Associated Press)
In their ongoing quest to lower prescription drug prices, some states are forcing drugmakers to continue to sell cheaper medications to thousands of pharmacies through a federal drug-discount program.
Under the 32-year-old 340B program, pharmaceutical companies that participate in Medicaid must sell outpatient drugs at discounted prices to clinics, community health centers and hospitals that primarily serve low-income patients. The idea is that providers will use the money they save — between 20% and 50% off the normal price — to expand their services.
But many such facilities don’t have in-house pharmacies, so in 2010 the federal government expanded the 340B program to allow many more outside pharmacies — so-called contract pharmacies — to dispense the drugs to eligible patients on behalf of health centers and hospitals. Among the top four pharmacy chains (Walmart, CVS, Rite Aid and Walgreens), 71% of locations participate in the 340B program, according to a recent study by the University of Minnesota School of Public Health.