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Cui Bono? Misaligned Incentives in the 340B Program

  • Writer: USC Leonard D. Schaeffer Institute for Public Policy & Government Service
    USC Leonard D. Schaeffer Institute for Public Policy & Government Service
  • Dec 19, 2025
  • 1 min read

The 340B Drug Pricing Program was created to provide safety-net providers (known as covered entities) access to discounted outpatient drugs. However, 340B has evolved from a modestly sized program to the second-largest drug-purchasing program in the U.S., with drug purchases totaling $66.3 billion in 2023.


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