340B Health

340B Drug Discount Program

The 340B program, passed by Congress in November 1992 and signed into law as part of the Veterans Health Care Act by George H. W. Bush, requires pharmaceutical manufacturers provide front-end discounts on covered outpatient drugs purchased by specified government-supported facilities, called “covered entities,” that serve the nation’s most vulnerable patient populations. These covered entities include community health centers, AIDS drug assistance programs, hemophilia treatment centers, Title X family planning clinics, and public and nonprofit hospitals that serve a high number of Medicaid patients. Together, they form the nation’s healthcare safety net. The 340B program allows them to purchase drugs at discounted rates and offer these rates to low-income, uninsured, and under-insured patients.