340B Health


What is 340B?

Section 340B of the U.S. Public Health Service Act provides that drug manufacturers that choose to participate in Medicare and Medicaid sell certain outpatient drugs to eligible safety-net providers at a discount. These providers then use the savings to “stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.” Learn more about 340B.

Drug Manufacturers are Refusing to Provide Required 340B Discounts

Two major drug manufacturers – Eli Lilly and AstraZeneca – have unilaterally stopped providing required 340B discounts when drugs are dispensed at community pharmacies. Sanofi is demanding access to patients’ insurance claims and has stopped offering 340B pricing through community pharmacy arrangements for hospitals that do not comply with the demand. Merck and Novartis are threatening similar actions against hospitals that do not hand over patient claims data. 

These actions are in violation of the 340B statute, which states that manufacturers “must provide” 340B pricing on any eligible drug to any eligible covered entity regardless of how the hospital intends to dispense the drug.

Without access to 340B discounts, millions of patients could be at risk of losing access to a wide range of services they rely on to stay healthy.

We are calling on Secretary of Health and Human Services Alex Azar to use his authority to put a stop to these harmful actions and protect patients and the providers who care for them. 

Read a letter from seven national organizations to Secretary Azar.