Commercial markups on pediatric oncology drugs at 340B pediatric hospitals

Author:

Liu Ian T. T.1ORCID,Wang Junyi1,Sarpatwari Ameet1,Kesselheim Aaron S.1,Feldman William B.12ORCID

Affiliation:

1. Program On Regulation, Therapeutics, And Law (PORTAL), Division of Pharmacoepidemiology and Pharmacoeconomics, Department of Medicine Brigham and Women's Hospital and Harvard Medical School Boston Massachusetts USA

2. Division of Pulmonary and Critical Care Medicine, Department of Medicine Brigham and Women's Hospital and Harvard Medical School Boston Massachusetts USA

Abstract

AbstractEligible pediatric hospitals can purchase clinician‐administered drugs at discounted rates through the 340B Drug Pricing Program and charge payers prices exceeding drug acquisition costs, but the magnitude of these markups is not known. In a study of newly approved oncology drugs at pediatric 340B hospitals, median negotiated prices ranged from 102% (interquartile range [IQR]: 91%–156%) of average sales price (ASP) at Phoenix Children's Hospital to 630% (IQR: 526%–630%) at Driscoll Children's Hospital. Pediatric hospitals participating in the federal 340B Drug Pricing Program can extract steep payments on new drugs from commercial insurers, though with wide variation between and within hospitals.

Funder

Arnold Ventures

National Heart, Lung, and Blood Institute

Publisher

Wiley

Reference10 articles.

1. Medicare Payment Advisory Commission.Report to Congress: overview of the 340B Drug Pricing Program.MEdpAC; May2015. Accessed September 20 2023.https://www.medpac.gov/wp‐content/uploads/import_data/scrape_files/docs/default‐source/reports/may‐2015‐report‐to‐the‐congress‐overview‐of‐the‐340b‐drug‐pricing‐program.pdf

2. Outcomes of the 340B Drug Pricing Program

3. Association Between New 340B Program Participation and Commercial Insurance Spending on Outpatient Biologic Oncology Drugs

4. Hospital-Administered Cancer Therapy Prices for Patients With Private Health Insurance

5. HenryJ Kaiser Family Foundation.Health insurance coverage of children 0–18. Timeframe 2022.Kaiser Family Foundation;2022. Accessed May 22 2024.http://kff.org/other/state‐indicator/children‐0‐18/

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