Minnesota Hospital Association

Policy & Advocacy

340B Drug Pricing Program

The 340B Drug Pricing Program has provided financial help to safety-net hospitals and clinics for over 25 years to manage rising prescription drug costs and preserve access to needed health care services. Under the federal 340B program, pharmaceutical manufacturers participating in Medicaid are required to sell outpatient drugs at discounted prices to eligible health care organizations that care for a large percentage of uninsured and low-income patients. This creates cost-savings opportunities for patients.

The 340B program is under attack.

  • As a result of changes in reimbursement policies, the resources available through the program have significantly decreased.
  • Despite the 340B program's over 25-yeartrack record of increasing access to care for vulnerable patients and communities ,some, including the pharmaceutical lobby, want to scale back or eliminate it. This would hurt patients while adding to the record profits of pharmaceutical companies.
  • The pharmaceutical industry routinely overstates the amount of savings the program provides. In reality, less than 3%of the $457 billion in annual drug purchases made in the U.S. are even eligible.