LAUSR

Key Points Question Is per-beneficiary Medicare Part B drug spending significantly different at hospitals that are part of the federal 340B Drug Pricing Program, which can purchase outpatient drugs from manufacturers at discounted prices, compared with hospitals that are not part of the 340B program, after adequate risk adjustments? Findings In this cross-sectional study that included 35 364 beneficiaries and 2446 hospitals, there was no statistically significant difference in Medicare Part B drug spending between 340B hospitals and non-340B hospitals, after controlling for beneficiary-level risk factors and hospital-level characteristics. Meaning These findings raise doubt about the financial incentive theory of 340B program drug discounts and the Centers for Medicare & Medicaid Services’ 340B drug payment policy rationale.