Modeling ‘penny pricing’ under 340B

Model uses Humira’s price at the start of each year, and assumes the largest rebate AbbVie paid to a PBM increased from 0% of AMP in 2003 and 10% in 2004, rising at a constant rate to 50% in 2021. The analysis also assumes the average manufacturer price (AMP), upon which the 340B ceiling price is based, is equal to wholesale acquisition cost (WAC). AMP is calculated by manufacturers and reported to CMS, but is not publicly available. 

For drugs with price increases that exceed inflation, participation in the 340B Drug Pricing Program could get expensive starting Jan. 1, 2024, when legislation that eliminates the cap on penalties levied against such drugs may apply to the program. ...