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340B Insight Podcast

Episode 80: The Inflation Reduction Act's Impact on 340B

August 28, 2023

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The Inflation Reduction Act (IRA) was enacted last year, and it includes a significant drug pricing component that will affect 340B savings on some of the drugs that cost the most for Medicare. In this episode, we are joined by Meetali Desai, director of pharmacy business services at UMass Memorial Medical Center, to discuss the impact of the IRA on 340B hospitals and health systems. (Transcript)

Show Notes

  • Uncovering the Effects of the Inflation Reduction Act. The IRA will result in unique changes to 340B hospitals and health systems. Meetali discusses how the changes will roll out, how the drug pricing component might affect 340B savings, and how hospitals can prepare for the changes.
  • Examining the Decrease in Medicare Reimbursements for 340B Hospitals. The IRA introduces a new maximum fair price (MFP) set by Medicare for select drugs. Meetali explains how this will create a smaller margin between the 340B price and the Medicare reimbursement amount, how that difference might affect a hospital's bottom line, and how administrators can project how that will affect their hospitals.
  • Modeling the Impact of the IRA. How can organizations respond to the changes the IRA might bring? Meetali explains how hospitals can simulate the real-world effects of the IRA on their operations through modeling and how this can better place them to make informed decisions about how to navigate these effects.

Check out all of our episodes on the 340B Insight podcast website. You also can stay updated on all 340B Health news and information by visiting our homepage. If you have any questions you’d like us to cover in this podcast, email us at podcast@340bhealth.org.


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