At a Glance

Overview

For nearly 30 years, the 340B Drug Pricing Program has provided financial help to safety-net hospitals to manage rising prescription drug costs. Section 340B of the Public Health Service Act requires pharmaceutical manufacturers participating in Medicaid to sell outpatient drugs at discounted prices to qualifying health care organizations that care for many uninsured and low-income patients.

This, in turn, allows hospitals to stretch limited federal resources to reduce the price of outpatient pharmaceuticals for patients and expand health services to patients and the communities they serve. The 340B program is more important now than ever before as 340B hospitals are responding to the immense financial and operational challenges posed by the COVID-19 public health emergency.

Despite the program’s proven track record of expanding patient access to medical services, some drug makers want to scale it back or significantly reduce its benefits. In addition, some groups continue to spread misinformation about the program while 340B hospitals have been on the front lines of addressing the COVID-19 pandemic. This document attempts to set the record straight on the 340B program.

View details under Key Resources.