It's a good idea to cut drug costs

The Wall Street Journal says it's a good idea to cut drug costs:

The White House has proposed good and bad ideas to reduce drug costs. Among the better ones is a reform of the obscure 340B drug program, which enriches large hospitals at the expense of patients. Cue the protests from the hospital lobby.

The 340B program is a classic example of a well-intended policy that has caused unintended harm. Congress established the program in 1992 to help hospitals that disproportionately serve Medicaid and low-income patients. Such hospitals are allowed to buy outpatient drugs at steeply discounted rates, on average about 45% of a drug’s list price.

Hospitals then charge insurers and Medicare a large mark-up on the drugs when their pharmacies administer them to patients, pocketing the difference