340B Eligibility Associated with Reduced Biosimilar Uptake

A recently published study in Health Affairs found reduced biosimilar uptake in hospitals in the 340B program, which provides drugs at reduced cost to certain care centers. The study examined nearly 600 hospitals using claims data, the Healthcare Cost Report Information System, and a 340 participation database. 340B-eligible care centers had a biosimilar usage rate that was 66% lower than non-eligible hospitals.

According to Allison Inserro, “As for revenue, noneligible hospitals received $23,379 in Medicare reimbursement for filgrastim and infliximab administrations compared with $41,298 for hospitals just above the 340B eligibility threshold. The adjusted discontinuity estimate indicated that 340B eligibility was linked with a $17,919 increase in reimbursement for biologics. Relative to the reimbursement just below the threshold, the estimate implies a 77% relative increase in reimbursement.”

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(Source: AJMC, May 12^th, 2023)