340B drug spending up 565%: CBO

Spending through the 340B Drug Pricing Program rose by 565% between 2010 and 2021, increasing from $6.6 billion to $43.9 billion, according to a report from the Congressional Budget Office. 

In 2021, 87% of 340B purchases were made by hospital-based facilities, and 41% of total spending was on cancer drugs, nearly triple that of any other category. Anti-infective and immunosuppressant drugs followed at 15% and 14%, respectively. 

The CBO attributed about one-third of the growth in 340B spending to broader marketwide increases in drug spending and a shift toward drug classes that are more heavily used within the 340B program. 

The report also noted that while the 340B program generates revenue for participating providers, because discounted drugs are often reimbursed by insurers at higher rates, there are no statutory requirements for how the funds are used.

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