Because of 340B, tens of millions of Americans in all 50 states have better access to life-saving care and medicines at no cost to taxpayers.
Because of 340B, patients in need have access to a vital safety net for essential health care. 340B bridges critical gaps in access to specialized services, connecting underserved patients and communities in all 50 states with the care they need. 340B helps improve patients’ health outcomes and improves their lives. At no cost to taxpayers.
What’s the 411 on 340B?
Watch the video below to see how 340B helps tens of millions of patients access needed care without costing the taxpayers anything.
340B ensures access to essential care.
The 340B drug pricing program supports health care providers that care for most of the nation’s patients living with low incomes and those in rural communities. 340B enables eligible hospitals, health centers, and clinics to purchase outpatient pharmaceuticals at a discount, invest those savings into offering more services and treating more patients, and expand access to low-cost drugs and care even further through pharmacy partners1, and invest those savings into programs and services that increase patients’ access to needed care. That enables participating hospitals to offer more comprehensive services for communities they serve and reach more patients in need. Drug company discounts – not taxpayers – cover the cost of this care2.
1 Vital 340B-Supported Patient Services Threatened as Manufacturer Restrictions Cut Into Savings, 340B Health, July 2023
2 Faces at a Glance: 340B Health, May 2024
When care falls short, 340B bridges the gap.
340B savings enable hospitals to offer health care services and support to patients in need that they otherwise could not provide. Hospitals tailor these services to the specific needs of the patients and communities they serve, including comprehensive diabetes programs, cancer treatment and prevention, behavioral and mental health care, HIV/AIDS care, treatment of opioid use disorder, and programs that support access to free and discounted drugs3. Hospitals also use the savings to fill gaps created when payers do not cover the full cost of care, leaving hospitals to make up the difference4.
3 340B DSH Hospitals Serve Higher Share of Patients with Low Incomes. Dobson DaVanzo. September 2022
4 340B DSH Hospitals Increased Uncompensated Care in 2020 Despite Significant Financial Stress. Dobson DaVanzo. July 2022
340B is accountable and transparent.
340B is accountable and transparent in how it benefits patients in need by boosting access to affordable medications and crucial health care services. 340B hospitals are subject to rigorous reporting and auditing to ensure compliance with federal requirements. They undergo annual recertification to demonstrate 340B eligibility. They document care for patients in need through annual Medicare cost reports5, IRS filings6, and other reporting. The federal government also audits hundreds of 340B providers every year. Through this thorough and rigorous oversight, 340B hospitals demonstrate that they use their savings to benefit patients and communities.
5 Form CMS-2552-10, Worksheet S-10 – Hospital Uncompensated and Indigent Care Data. Centers for Medicare & Medicaid Services.
6 Instructions for Schedule H (Form 990)(2022). Internal Revenue Service.
340B keeps communities healthy and thriving.
Research demonstrates that communities are healthier because of 340B. The benefits that 340B hospitals provide to patients come through increased access to health care programs, treatments, and services that improve health outcomes. These include decreasing unnecessary hospital visits, improving diabetics’ hemoglobin A1C levels, improving patient adherence to drug regimens, detecting early-stage cancers, and lowering the risks of blood clots7.
Because of 340B, safety-net hospitals stretch scarce resources to reach more patients and provide more comprehensive services.
In 1992
the 340B drug pricing program became law through a bipartisan act of Congress. The congressional intent for 340B is for drug companies to discount prescription drugs for eligible hospitals, health centers, and clinics so those providers can “stretch scarce federal resources as far as possible.”
Drug Company 340B Restrictions Are Stripping
Billions of Dollars from the Health Care Safety Net.
critical access hospitals
have been forced to cut
services due to restrictions
safety-net hospitals with
impacted discounted drug
assistance programs
report patient harm
of safety-net hospitals
expect to cut services
if restrictions persist
Faces of 340B
Tens of millions of patients have access to the care they need because of 340B, and their lives and health are better as a result. But don’t just take it from us. Listen to the people who rely on 340B to get healthy and stay healthy.
Protecting 340B is critical for the health of America’s patients and communities. Closing the gaps in care helps the underserved access the care they need, keeps people at work, and benefits the nation’s economy.