Report To Congress: Overview of the 340B Drug Pricing Program

The 340B Drug Pricing Program allows certain hospitals and other health care providers
(“covered entities”) to obtain discounted prices on “covered outpatient drugs (prescription drugs and biologics other than vaccines) from drug manufacturers. Manufacturers must offer340B discounts to covered entities to have their drugs covered under Medicaid. The discounts are manages the program, estimates that covered entities saved $3.8 billion on outpatient drugs through the program in fiscal year 2013. According to HRSA, the intent of the 340B program is to allow certain providers to stretch scarce federal resources as far as possible to provide more care to more . . .