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https://doi.org/10.1016/j.jhealeco.2023.102754
Title: | The impact of the 340B Drug Pricing Program on Critical Access Hospitals: Evidence from Medicare Part B | Authors: | Han, Dan | Keywords: | Social Sciences Science & Technology Life Sciences & Biomedicine Economics Health Care Sciences & Services Health Policy & Services Business & Economics 340B Drug Pricing Critical Access Hospitals Cost-based reimbursement Medicare CONSEQUENCES CARE |
Issue Date: | May-2023 | Publisher: | ELSEVIER | Citation: | Han, Dan (2023-05). The impact of the 340B Drug Pricing Program on Critical Access Hospitals: Evidence from Medicare Part B. JOURNAL OF HEALTH ECONOMICS 89. ScholarBank@NUS Repository. https://doi.org/10.1016/j.jhealeco.2023.102754 | Abstract: | I study the impact of expanding the 340B Drug Pricing Program to include Critical Access Hospitals (CAH) on Medicare Part B drug utilization and spending. The 340B program entitles certain hospitals and clinics to discounts on most outpatient drugs. In 2010, the Affordable Care Act expanded 340B eligibility to CAHs — small rural hospitals that receive cost-based reimbursement from Medicare. Exploiting variation in the predicted exposure to the 340B expansion in a difference-in-differences method, I find that the 340B expansion reduced Part B drug spending but did not affect Part B drug utilization. This finding contrasts with existing evidence about 340B's impact on hospitals but is consistent with the prediction that cost-based reimbursement dampens the incentives created by the 340B discounts. I also find suggestive evidence that CAHs passed the cost savings from 340B on to patients. These results add new perspectives to the ongoing debate over 340B. | Source Title: | JOURNAL OF HEALTH ECONOMICS | URI: | https://scholarbank.nus.edu.sg/handle/10635/242537 | ISSN: | 0167-6296 1879-1646 |
DOI: | 10.1016/j.jhealeco.2023.102754 |
Appears in Collections: | Elements Staff Publications |
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