Who Benefits from the 340B Drug Discount Program?

The 340B program was created by Congress in 1992 to help vulnerable or uninsured patients gain access to needed prescription medicines, by requiring pharmaceutical manufacturers to provide steep discounts to certain types of clinics and hospitals as a condition of their drugs being covered by Medicaid.

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Unfortunately, the program has strayed from its core mission and is growing dramatically, with hospitals responsible for much of this growth. While clinics that receive government grants largely use the program to improve access to medicines for needy patients, not all 340B hospitals are good stewards of the program.

PhRMA supports the original intent of the program and is committed to working with Congress and the administration to reform the 340B program to ensure it reaches the vulnerable or uninsured patients it was intended to help.

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