For over 25 years, the 340B Drug Pricing Program has helped safety-net hospitals and clinics manage rising prescription drug costs and keep health care services available in their communities. The program requires drug companies to sell medications at lower prices to health care organizations that serve large numbers of uninsured and low-income patients.
A patient’s insurance status or income doesn’t determine whether a hospital can access 340B discounts. If the hospital serves enough low-income patients overall, discounts apply to all eligible outpatient drug purchases. These savings typically range from 25-50% off regular prices.
Who Can Participate
How Hospitals Use 340B Savings
Hospitals use these savings to provide care that often isn’t fully covered by insurance or government programs. This includes free care for uninsured patients, free vaccines, mental health services, medication assistance programs, and community health initiatives.
340B savings also help reduce health care disparities. Hospitals have used these funds to expand charity care, increase services for seniors, and bring cancer treatment and maternity care to rural areas that might otherwise go without.
340B savings are essential for safety-net hospitals to invest in patient care and offset the gap between what it costs to provide care and what Medicaid and other programs pay.
Policymakers should protect the 340B program, not eliminate, scale back, or weaken it.
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