The 340B Program is a federal initiative passed in 1992 as part of the Public Health Services Act, that allows certain eligible healthcare organizations, known as covered entities, to purchase outpatient prescription drugs at discounted prices, typically between 20-50%. Since 1992, it has grown to be the second-largest federal prescription drug program, only second to Medicare Part D.

These organizations include:

•  Federally Qualified Health Centers 
• Ryan White HIV/AIDS Program Grantees 
• Hospitals 
• Specialized Clinics 

 

Patients who receive care at these facilities, regardless of their insurance status, may access 340B pricing on outpatient drugs. However, not all other 340B sites spend 340B profits in ways that benefit patients. The 340B program lacks transparency. At the Autoimmune Association, we are concerned that a recent review of claims data indicates only 1.4 percent of 340B eligible prescription discounts were passed on to patients. PBMs and insurers have found ways to lower reimbursement to shift 340B revenue to themselves and may even claim manufacturer rebates that were intended to increase savings on prescriptions for patients.