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What is the 340B Program?

As defined by the United States Department of Health and Human Resources, the 340B Program enables Covered Entities to stretch scarce Federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.

Manufacturers participating in Medicaid, agree to provide outpatient drugs to Covered Entities at significantly reduced prices.

Eligible health care organizations/covered entities are defined in statute and include HRSA-supported health centers and look-alikes, Ryan White clinics and State AIDS Drug Assistance programs, Medicare/Medicaid Disproportionate Share Hospitals, children’s hospitals, and other safety net providers.

To participate in the 340B Program, eligible organizations/Covered Entities must register with HRSA and comply with all 340B Program requirements. Once enrolled, covered entities are assigned a 340B identification number that vendors verify before allowing an organization to purchase 340B discounted drugs.

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