The Financial Impact to Medicaid from the 340B Drug Pricing Program

In April 2025, BRG researchers published an issue brief on the potential impact to state Medicaid programs from state manufacturer mandate laws involving contract pharmacies in the 340B Drug Pricing Program (“340B program”). As presented in the April brief, such mandates would cost Medicaid $1.2 billion more annually, of which $437 million would impact state budgets directly. This July brief explores the 340B program’s broader current fiscal impact related to Medicaid.

This study was funded by the Pharmaceutical Research and Manufacturers of America.