Is 340B Just a Hospital Ripoff?

[Webster]

American Family News: Court ruling shines light on hospitals that might be ripping you off

Reacting to a Wall Street Journal editorial that praised a federal court ruling, a medical watchdog is praising the newspaper for taking the side of hospital patients.

A federal drug pricing program, known as 340B, was at the center of a ruling handed down by Judge Daniel Traynor in April. Traynor’s opinion blocked a North Dakota law that sought to expand 340B, calling the state law a “windfall” for hospitals instead of struggling, low-income patients the program is intended to help.

Reacting to that ruling, The Wall Street Journal editorial board called it a “spectacular opinion” because the judge understood hospital conglomerates are misusing 340B to buy medicines at steep discounts. With that discount, they are then jacking up the price if a patient has private insurance. "His special contribution is his opinion explaining how a program meant to help American poor is being abused to provide a windfall to hospital conglomerates and participating pharmacies," the editorial states.

The controversy of 340B is not new for the business-focused Wall Street Journal. It previously called the program a “cash cow” for hospitals in a news article.

Twila Brase, an RN who leads Citizens' Council for Health Freedom, told American Family News she is grateful The Wall Street Journal is reporting on 340B and hospitals. That’s because she compares it to “money laundering” because the pharmaceutical companies are forced to sell at a discount. “Then those hospitals are turning around and charging higher rates, or maybe even the full price, and the patient isn't even benefiting," Brase told AFN.

"It's profiteering for the hospital that they should be able to get these products at a low price and then sell them at a high price,” she added.