Examining The 340B Drug Pricing Program

In 1992, Congress enacted section 340B of the Public Health Service Act (PHS Act), 42 U.S.C. 256b, to establish the 340B program, which is managed by the Health Resources and Services Administration (HRSA). The program was created to generate savings for certain safety-net health care providers by allowing them to purchase outpatient drugs at discounted prices. These savings could then be used to “stretch scarce Federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.” HRSA estimated that the annual savings attributable to the 340B program in 2013 was $3.8 billion . . .