340B Drug Savings Program

For 25 years, the 340B program has provided hospitals with financial help to expand access to life-saving prescription drugs and comprehensive health care services to low-income and uninsured individuals in communities across the country.

Section 340B of the Public Health Service Act requires pharmaceutical manufacturers participating in Medicaid to sell outpatient drugs at discounted prices to health care organizations that care for many uninsured and low-income patients. 340B hospitals use the savings they receive on the discounted drugs and reinvest them in programs that enhance patient services and access to care, as well as provide free or reduced priced prescription drugs to vulnerable patient populations.

The AHA Advocacy Alliance for the 340B Drug Pricing Program works to promote the value the 340B program provides to patients and communities and to oppose any efforts to scale back the program. Through email communications, conference calls and special briefings, the AHA 340B Advocacy Alliance keeps hospitals informed about the latest news and developments on the program, as well as actions hospital leaders can take to support the program.

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