Signed into law in 1992, Section 340B of the Public Health Service Act established the 340B Drug Pricing Program, a program that supports our nation’s safety-net health care providers.
Under the 340B Drug Pricing Program, health centers, hospitals, Ryan White clinics and certain other types of providers (collectively known as “covered entities”) buy outpatient prescription drugs at a discount. The savings covered entities realize through this program help them stretch the scarce federal resources they receive for committing to serve historically marginalized and underserved patients. Covered Entities reinvest that savings into their services and programs.
Without the 340B Program, Covered Entities risk not being able to provide care to our nation’s most vulnerable populations, including those most impacted by the HIV epidemic in the United States.
We want to maintain the integrity of the 340B program in order to ensure that people living with and at risk of HIV have access to health care. We believe:
The how to preserve 340B section goes into more detail about each of these points.
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