340B Employer Hidden Health Care Costs Calculator

There is a growing body of evidence that the 340B Drug Pricing Program is driving up employer health care costs. The 340B program, now the second-largest federal drug program, leads to lost manufacturer rebates and market consolidation which in turn leads to higher reimbursement levels at hospital-owned facilities and site-of-care shifts. These dynamics can increase overall plan spending without directly reducing employer or employee costs.

How does the program work?

The 340B Drug Pricing Program allows participating hospitals and clinics to purchase outpatient medicines at significant discounts while continuing to receive full reimbursement from payers, including employer-sponsored health plans. Originally intended to support safety-net providers and expand access to care for underserved patients, the program has grown substantially and now represents more than $81 billion in annual drug purchases, making it the second-largest federal drug program after Medicare Part D.

The 340B Employer Cost Impact Calculator

This tool helps employer-sponsored health plans quantify the financial impact of 340B-related drug pricing dynamics on their health benefit spend. This interactive tool enables company representatives to estimate potential excess costs associated with 340B utilization using company-specific and real-time inputs. It highlights two essential insights for employers:

Estimated additional cost per covered life

Total annual employer burden of the 340B program

340B Employer Hidden Health Care Costs Calculator

How does the program work?

The 340B Employer Cost Impact Calculator

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