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Policy Brief: 340B Drug Discount Program

The federal 340B drug discount program was created in 1992 to provide discounted outpatient drugs to safety net health care facilities serving vulnerable populations. The program has grown since then, primarily because the Affordable Care Act expanded hospital eligibility, and the Health Resources and Services Administration which administers the program, allowed health facilities to contract with multiple pharmacies.

The program’s expansion has brought new attention to it and raised several policy issues. A new briefing from Health Affairs provides an overview of the program, discusses the stakeholders, identifies and discusses the issues surrounding the program, and looks at where things stand and what’s next for 340B from the policy perspective.

Source: Stencel K. Health policy brief: 340B drug discount program. Manufacturers are required to provide outpatient drugs at a discount to certain health centers, hospitals, and clinics. Health Affairs Blog, Nov. 17, 2014. http://www.healthaffairs.org/healthpolicybriefs/brief.php?brief_id=130

Posted by AHA Resource Center (312) 422-2050 rc@aha.org