GAO Report on Medicare Part B Drugs and 340B Hospitals

July 6, 2015

The U.S. Government Accountability Office (GAO) has released a report comparing its findings on the financial sustainability of the Medicare program, while considering the differences in the prescribing patterns between 340B hospitals and non-340B hospitals for all drugs, emphasizing oncology medications. The GAO analyzed 2008 and 2012 data from the Health Resources and Services Administration and the Centers for Medicare and Medicaid Services and found that 340B disproportionate share hospitals had higher spending per Medicare beneficiary. Based on the report, the GAO has recommended that “Congress should consider eliminating the incentive to prescribe more drugs or more expensive drugs than necessary to treat Medicare Part B beneficiaries at 340B hospitals.”