Gov't data shows skyrocketing 340B spending

A special Friday edition with new data on 340B spending and a New York Times feature highlighting Pivot Bio's outstanding work to support farmers and the planet with biotech. (437 words, 2 minutes, 11 seconds)

New government data shows 340B spending skyrocketing

The 340B program grew by 24% in 2023, according to new figures from the government’s Health Resources and Services Administration.

The numbers: Sales at discounted prices exceeded $66 billion, more than $12 billion above 2022. Overall, the program has doubled in size since 2019.

Why it matters:340B has emerged as a major revenue source for certain kinds of safety net providers, who can buy medicines at discounted prices and then seek reimbursement at standard rates, profiting off of the difference between the two prices. 340B sales at invoice prices totaled $124 billion in 2023. Further inflating hospital profits is the practice of marking up products well above their list prices, Bio.News explains.

Despite the growth, there is little oversight. Academic research has shown repeatedly that 340B hospitals are not leaders in providing charity care—and 340B profits exceed charity care spending at large nonprofit hospitals.

The growth is creating ripple effects that are raising the cost of health care for others—including employers who lose out on rebates when claims are processed by 340B hospitals and state Medicaid programs.

BIO’s view: BIO supports programs that create a stronger safety net for American patients. But the data is increasingly clear that the 340B program has not delivered.

Read more on Bio.News.

NYT highlights how Pivot Bio is helping farmers and the environment

A must-read New York Times profile highlights how Pivot Bio, a BIO member company, is revolutionizing agriculture with its genetically modified bacteria, offering significant benefits for farmers and the environment.

Who is Pivot Bio? California-based Pivot Bio specializes in genetically modifying soil bacteria to enhance nutrient availability for crops, thereby reducing the need for chemical fertilizers and minimizing environmental impact.

Why it matters: “Pivot estimates that last year, its treated seeds prevented the release of an estimated 706,000 metric tons of carbon dioxide equivalent—comparable to the greenhouse gasses from burning 1.5 million barrels of oil,” explains the NYT.

Here’s how: “Two years ago, [Illinois farmer Jim Purlee] started to use Pivot’s treated seeds that are coated with the genetically modified bacteria. The result, he said, has been more robust plants grown with less fertilizer. An acre of corn typically uses about 180 pounds of chemical fertilizer; Mr. Purlee was able to shave off 40 pounds by using Pivot’s product.”

What they’re saying: “Basically, you have to pick here,” said Dr. Christopher Voigt of MIT, a leading expert in biological engineering and a collaborator with Pivot Bio. “Greenhouse gas emissions or the use of a genetically modified organism. You have to make a choice. You can’t address the challenge without technology.”

Read the whole thing.

Beltway Report: What's Ahead in Washington

Congress remains in recess until after the election.