Opinion: There is a successor to 340B lurking on the horizon

Summary: The 340B program gives safety-net hospitals big discounts on medicines so they can help low-income patients. Right now, the Trump administration is trying for a second time to fix problems with this program. However, a huge new problem is coming in 2028 because of Medicare's new drug price negotiations.

Right now, outpatient clinics make money by keeping a 6% fee on the drugs they give to patients. If Medicare lowers the price of these drugs, that 6% fee shrinks. Because of this, cancer clinics could lose up to 47% of their drug revenue—about $25 billion—and some might even have to close down.

To stop these clinics from closing, politicians like Sen. John Barrasso want to force drug makers to pay extra money directly to the clinics. But experts say this is a bad idea. It just creates a messy new system that works exactly like the old broken one. Instead of these quick fixes, we need to change how we pay clinics so they aren't pushed to use the most expensive drugs just to make a profit.

For more details, see statnews at statnews.com/2026/03/19/340b-reform-medicare-drug-price-negotitation-program/?utm_campaign=rss (opens in new tab)