What Is 340B?
The 340B Drug Pricing Program was created in 1992 to provide discounts on outpatient prescription drugs to select safety net providers, including Federally Qualified Health Centers. The program requires drug manufacturers to provide outpatient drugs to these eligible health care organizations at significantly reduced prices.
340B was designed to promote:
- access to affordable medications
- efficient business practices
- outcome-driven pharmacy services
- quality assurance
The end goal of the federal program is to enable covered entities “to stretch scarce Federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.”