GAO Urges Curbs on 340B Spending Incentives

(By – Marie Rosenthal,

Congress should consider reducing financial incentives that make it easier for 340B hospitals to prescribe more drugs—many at a higher cost—than necessary to Medicare recipients, according to a new report by the Government Accountability Office (GAO).

The GAO report, which was commissioned by several leading members of Congress, found that in 2012, the average yearly drug spending per Medicare beneficiary at 340B hospitals was $144, compared with $60 at non-340B hospitals that also served low-income patients and $62 at non-340B facilities that did not serve such patients. Read more…


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