What is 340B?
Administered by the OPA (Office of Pharmacy Affairs) within the HRSA (Health Resources and Services Administration) the 340B drug pricing program refers to a federal statute that requires drug manufacturers to sell outpatient drugs to eligible health care centers, clinics, and hospitals at a reduced price. This requirement is described in Section 340B of the Public Health Service Act of 1992. It was enacted to provide financial relief to covered entities that provide care to medically vulnerable and underserved populations.
Congress created the 340B program to allow safety-net health care providers, like hemophilia treatment centers (HTCs) who serve vulnerable populations, to purchase discounted outpatient drugs, provide them to their patients, and use the income generated to stretch their scarce federal funding and resources that support direct care and education services to patients.
Prices available under the program are significantly lower than both retail and wholesale prices. The Government Accountability Office has reported that according to HRSA, program participants can save an estimated 20-50% off drug costs.
The 340B law prohibits the resale or transfer of discounted outpatient drugs to anyone other than a patient of the covered entity. In our case, one of the 18 federally funded HTCs in our region. Cascade and all other participating HTCs in our region are subject to federal audits by HRSA.
Participation in the 340B program allows us to support the valuable comprehensive care model to bleeding disorder patients in our region.