Setting the Record Straight on 340B: Fact vs Fiction

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. 

Related Resources

Action Alert
Member
Please contact your members of Congress and urge them to support legislation that will provide certainty to hospitals participating in the 340B Drug Pricing…
Letter/Comment
Public
The AHA expresses support for legislation  H.R. 3203 introduced in the House that would provide certainty to hospitals participating in the 340B Drug Pricing…
Letter/Comment
The AHA and five other health care organizations sent the attached letter to HHS Secretary Becerra urging him to stop the actions of six drug companies that…
Letter/Comment
Public
AHA urges the Department of Health and Human Services (HHS) to ensure hospitals currently participating in the 340B Drug Pricing Program continue to have…
Letter/Comment
Public
AHA letter to Senators, John Thune, Rob Portman, Shelley Moore Capito, Tammy Baldwin, Debbie Stabenow and Ben Cardin expressing support for legislation, S. 773.
Fact Sheets
Public
For more than 25 years, the 340B Drug Pricing Program has provided financial help to hospitals serving vulnerable communities to manage rising prescription…