New tool sheds light on drug pricing distortions increasing employer healthcare costs
WASHINGTON, April 2, 2026 /PRNewswire/ — The National Alliance of Healthcare Purchaser Coalitions announced availability of its 340B Employer Cost Impact Calculator, a first-of-its-kind tool designed to help employers and other healthcare purchasers quantify how the federal 340B Drug Pricing Program is driving up their healthcare costs.
A growing body of evidence shows that the 340B program – the second-largest federal drug program – can increase employer health plan spending through lost manufacturer rebates, market consolidation, site of care shifts, incentives to prescribe more, higher-priced drugs and fewer biosimilars, and higher reimbursement levels at hospital-owned facilities. These dynamics can raise overall plan costs without directly lowering expenses for employers or employees.
The new calculator enables employer sponsored health plans to estimate potential excess costs associated with 340B program dynamics using company specific and real-time inputs. The tool highlights two essential insights for employers:
- Estimated additional cost per covered life
- Estimated total annual employer burden of the 340B program
All model estimates are derived from publicly available research, government databases, and established national benchmarks.
“The 340B program plays an important role in our healthcare system, but its unintended consequences have gone unchecked for far too long,” said Shawn Gremminger, National Alliance president and CEO. “Employers deserve transparency about how the hidden costs of the program affect their health plans and their people. This calculator gives purchasers the clarity they need to understand the impact and drive more informed, value based decisions.”
Understanding the 340B Program’s Impact
The 340B Drug Pricing Program allows eligible hospitals and clinics to purchase outpatient drugs at steeply discounted prices while still receiving full reimbursement from payers, including employer sponsored insurance plans. Although the program was originally designed to strengthen safety net providers’ ability to serve underserved patients, it has grown substantially, representing more than $81 billion in annual drug purchases and ranking just behind Medicare Part D among federal drug programs.
The calculator adjusts national averages using state specific differences in rebate losses and 340B program density. These inputs are derived from IQVIA state level rebate loss estimates; HRSA 340B OPAIS database; and US Census population data.
The National Alliance encourages employers to use estimates from the tool to work with their pharmacy benefit managers to better understand exactly what share of their prescription drug spend is flowing through 340B. Further, the tool can support efforts to better educate policymakers and other stakeholders about the impact of 340B on employers’ bottom lines and working families’ finances.
About National Alliance of Healthcare Purchaser Coalitions
For more than 30 years, the National Alliance has brought together business coalitions and their employer and purchaser members to drive high-quality healthcare that enhances patient experience, promotes health equity, and improves outcomes while lowering costs. Its members represent public and private sectors, nonprofits, and labor unions that provide health benefits to over 90 million Americans—more than half of the employer-sponsored insurance market—spending over $850 billion annually. To learn more, visit nationalalliancehealth.org and connect on LinkedIn.
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SOURCE National Alliance of Healthcare Purchaser Coalitions
