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A new analysis from IQVIA, ‘The Cost of 340B to People with Diabetes,’ finds that commercially insured people with diabetes and their health plans bear a disproportionate share of costs associated with the federal 340B Drug Pricing Program. The findings raise questions about how 340B affects patients with chronic conditions and the employers that provide their health coverage, and points to the need for greater transparency into the program.
The white paper was supported by the Diabetes Leadership Council (DLC), which helped ensure its findings were considered through the lens of people living with diabetes.
The Cost of 340B to People with Diabetes estimates that in 2025, commercial health plans and self-insured employers spent an additional $4.8 billion on medications for diabetes patients because the 340B program prevented them from receiving negotiated drug rebates. The analysis also estimates that diabetes patients with commercial insurance paid $156 million in 340B-related out-of-pocket up charges, which can occur when a patient’s cost sharing exceeds the discounted price a 340B provider paid for the medication.
“People with diabetes already face significant and unavoidable costs to manage a lifelong condition, and they should not be disproportionately absorbing additional costs from a program designed to strengthen the health care safety net,” said George Huntley, CEO of the Diabetes Patient Advocacy Coalition (DPAC). “This analysis reinforces the need for greater transparency and accountability around 340B so patients, employers and policymakers can better understand where costs are going and whether the program’s benefits are reaching the people it was intended to help.”
The full IQVIA white paper, The Cost of 340B to People with Diabetes, is available here.
