The 340B Drug Pricing Program has grown rapidly, increasing the need to understand how its financial effects extend beyond participating covered entities. While hospitals and clinics use 340B discounts to generate spread revenue, those discounts can also displace negotiated manufacturer rebates that otherwise reduce prescription drug costs for employers, enrollees, and taxpayers.

This study estimates the cost of 340B-related rebate displacement to commercial health plans, employers, states, and the federal government using data from 2025.