In 1992, in a bipartisan effort, Congress created the 340B drug pricing program to help qualified hospitals and other providers with a safety net role obtain reduced-price drugs. The 340B program requires pharmaceutical manufacturers who participate in Medicaid or Medicare Part B to provide discounts on covered outpatient drugs purchased by 340B covered entities, including hospitals, community health centers, AIDS clinics, hemophilia treatment centers and family planning clinics. The 2010 Affordable Care Act expanded the program to include freestanding children’s and rural hospitals.
The 340B program helps members of America’s Essential Hospitals care for underserved populations and reduces federal and state health care spending. Continue Reading