Employers Beware: 340B Program Shared Savings Models Require Scrutiny

With drug spending a top concern for plan sponsors and costs rising, employers continue to explore new strategies to better manage spending. New “shared savings” vendors attempt to appeal to employers frustrated with their traditional pharmacy benefit managers (PBMs). However, many rely on exploiting loopholes in the 340B Drug Pricing Program, which has been shown to drive up costs for employers. What they promise as short-term “savings” may in fact undermine continuity of care for employees and expose employers to reputational, regulatory, and even legal risks. This Action Brief provides employers with the tools to identify these vendors, understand the implications as plan sponsors, and consider alternatives to control health costs.