What Matters for Health Centers: 340B Drug Program

Latest news: President Biden Freezes Insulin/Epipens Regulation Harmful to Community Health Centers and Patients

The 340B Drug Pricing Program is an essential source of support for Community Health Centers, allowing them to stretch increasingly scarce federal resources and reinvest in patient care. The program allows health centers to purchase outpatient drugs at significantly reduced costs. Health centers pass the savings on to their patients through reduced drug prices and invest additional savings to expand access and improve health outcomes. Health center patients include people living with HIV, people who have lost their jobs and health insurance in the economic decline, or even essential workers who test positive for COVID-19 but do not require hospitalization. The cost of medicines can easily push them further into poverty, disease, even death.

Current Threats to the 340B Program

NACHC is concerned about a recent series of actions by drug companies that threaten patient access to critical medicines available through the federal 340B Program. These attacks would divert savings away from patient care and into corporate pockets, ultimately tying the hands of health center doctors and other care providers in the midst of the COVID-19 pandemic.

View NACHC’s 340B Advocacy Toolkit for information about how to defend the program. (10/26/2020)
340B Manufacturer Restriction on Contract Pharmacies chart. (5/23/2022)

NACHC Lawsuit Against HHS to Defend 340B

NACHC files suit against HHS to defend the 340B program 10/21/2020

Media coverage: Health Centers Sue HHS Over Drug Company Denials of 340B Pricing, 340B Report (10/21/2020)

NACHC Statements and Media Briefing

Media Briefing: Community Health Center Leaders Defend the 340B Drug Discount Program Against Rx Manufacturer Attacks (9/16/2020)
On September 16, NACHC held a media briefing featuring Community Health Center leaders, pharmacists, and a patient who relies on the savings from the 340B program for life-saving medication. Watch video.

Fed Delays Implementation of 340B Rule After Health Centers, Lawmakers Sound Alarm (9/24/2020)

Protecting 340B Discount Drug Program a Top Priority for National Association (9/4/2020)

The White House Executive Order Regarding Health Centers and the 340B Drug Pricing Program (7/24/2020)

Leaders Speak Out in Support of 340B

• Low-Income Kansans Rely on 340B Drug Pricing Program, KSAL.com, Robert Kraft, MD Chief Executive Officer/Chief Medical Officer and Derek Pihl, PharmD, Executive Director of Pharmacy Services, Salina Family Healthcare Center (10/19/2020)
• Threats from Pharmaceutical Manufacturers on the 340B Drug Discount Program, Reading Eagle, (10/1/2020)
• Pharmacy program that saves lives under attack, Iowa Telegraph-Herald, Crescent Health Center CEO Gary Collins (9/30/2020)
• Rep. Axne Leads Fight Against  Increasing Costs of Insulin and Epinephrine (9/15/2020)
• Sen. Baldwin Leads Bipartisan Effort in Urging Action, Wisconsin Business

Quick References

2018 NACHC Policy Paper: 340B Program: Increased Access for Underserved Patients Providing Discounted Drugs and Enhanced Services to Those in Need (PDF)

Resources: The Nuts and Bolts of 340B; Impact of Health Centers’ 340B Savings

Important Links

340B Coalition

Suggested Template for One-Pager Describing Impact of Contract Pharmacy

Operational Support for Health Centers with 340B Programs

NACHC 340B Manual Second edition (available for free to organizations that purchased the first edition).

NACHC’s Monthly 340B/Pharmacy Office Hours are held the third Thursday of each month except in March and August at 2:00 pm eastern time. Learn more.

Apexus Advanced 340B Operations Certificate Program

Health centers that participate in the Apexus certificate program can receive a $100 discount by using the code NACHC2018.

Capitol Hill Activity on 340B

• • House Energy and Commerce Committee Report: “Review of the 340B Drug Pricing Program” (January 2018)
  • Congressional hearings on the 340B program:

July 2018 – House Energy and Commerce Committee hearing, “Opportunities to Improve the 340B Drug Pricing Program”

June 2018 – Senate Health, Education, Labor and Pensions Committee Hearing, “Effective Administration of the 340B Drug Pricing Program”

May 2018 – Senate Health, Education, Labor and Pensions Committee Hearing, Examining Oversight Reports on the 340B Drug Pricing Program”

March 2018 – Senate Health, Education, Labor and Pensions Committee Hearing, “Perspectives on the 340B Drug Pricing Program”

October 2017 – House Energy and Commerce Subcommittee on Oversight and Investigations Hearing, “Examining How Covered Entities Utilize the 340B Drug Pricing Program”

July 2017 – House Energy and Commerce Subcommittee on Oversight and Investigations Hearing, “Examining HRSA’s Oversight of the 340B Drug Pricing Program”

GAO Report: “Drug Discount Program: Federal Oversight of Compliance at 340B Contract Pharmacies Needs Improvement”(July 2018)
E&C Chairmen
Letters to Select Contract Pharmacies (August 2018)
Chairmen Hatch and Walden Letter to OMB regarding PBM Rebates (August 2018)
Bipartisan HELP/ E&C Letter Urging HRSA to Use Existing Authorities (August 2018)