Analysis of 2020 commercial outpatient drug spend at 340B participating hospitals

The 340B program allows participating hospitals to obtain certain outpatient medications for reduced costs. These 340B hospitals are generally eligible for the program based on serving a disproportionate share of low-income Medicare and Medicaid patients and other criteria. In June 2015, a U.S. Government Accountability Office (GAO) study compared per Medicare beneficiary hospital pharmacy outpatient drug spending at 340B drug spending to non-340B hospitals. This white paper updates a 2018 Milliman paper that used 2015 data and reported whether the same relationships exist in a commercially insured population. For this report, Milliman used a 2020 proprietary commercial claims data set and applied a methodology similar to the 2015 GAO report.

This report was commissioned by Pharmaceutical Research and Manufacturers of America (PhRMA).