Price Controls in Action: Understanding the Rise of the 340B Program

The health care reform law dramatically expanded the number of entities eligible to purchase drugs via the federally administered 340B program, while simultaneously increasing the size of the mandatory discounts given to covered entities. Manufacturers are understandably frustrated. Rather than hope for elimination of the program, however, they may be better served working within the system to contain its impact.

By Michael McCaughan

The US pharma market is often described as unique in the industrial world, because it lacks price controls.

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