Why Should a Plan Sponsor Care About the 340B Charity Program? With Shawn Gremminger
Summary
Host Sean Greer explains why plan sponsors must prioritize the 340B drug discount program, which now handles $68 billion in purchases. He details how 340B drives hospital consolidation, inflates prices, and encourages prescribing higher-cost drugs to maximize profit spreads. Greer argues that employers lose negotiated PBM rebates when drugs flow through this channel, directly increasing healthcare costs. He urges stakeholders to view 340B as central to drug pricing debates rather than an isolated issue.
Topics discussed
Introduction: Why plan sponsors should care about 340B
Overview of the 340B program and its massive scale
Conflicts: Pharma vs. Hospitals and lack of charity care reinvestment
Contract pharmacy disputes and Apexis revenue controversies
Guest intro: Sean Greer on the National Alliance of Healthcare Purchasers
Podcast sponsors and listener appreciation
Sean Greer: Why employers and purchasers are impacted by 340B
Distortion 1: 340B drives hospital consolidation and higher prices
Distortion 2: Higher markups and prescribing of expensive drugs
Distortion 3: Employers lose PBM rebates in 340B transactions
Recap of distortions and non-medical switching to avoid IRA caps
Discussion on evidence, pharma funding, and industry blame games
Integrating 340B into the broader drug pricing debate
Conclusion and call for podcast support
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