Bass, Berry & Sims attorney Jeff Davis provided insight for an article in Modern Healthcare examining the potential impact that heightened tariffs may have for pharmaceuticals and pricing under the 340B Drug Discount Program. If the United States raises tariffs on imported drugs and related ingredients, many of which are sourced in India and China, the drug manufacturers may face higher production costs which could be passed along to hospitals. However, if drug prices increase faster than inflation, under the 340B Drug Discount Program, manufacturers are required to sell drugs to eligible hospitals at deeper discounts.
“If manufacturers were to increase prices due to market changes, the inflation penalty could help limit the impact of those price increases on 340B providers,” said Jeff.
The full article, “Drug Tariffs Could Boost 340B Discounts—and Scrutiny,” was published by Modern Healthcare on May 5 and is available online (subscription required).