ABHP ADVOCACY TO PROTECT 340B DRUG PRICING PROGRAM

Section 340B of the Public Health Service Act (Pub. L. 102-585) requires participating drug manufacturers to provide discounted prices on covered outpatient drugs, to eligible healthcare organizations known as covered entities, who serves the country’s indigent and vulnerable patient population. The intent of the program is to permit covered entities to stretch scare federal resources as far as possible, reaching more eligible patients and providing more comprehensive health services. Covered entities realize significant savings by purchasing outpatient drugs through the 340B program. Covered entities use these savings to provide additional services that will benefit patients. The 340B program helps safety-net providers carry out their missions to serve their communities.