340B Drug Pricing Program

Educational Briefing for Suppliers and Service Providers

Executive Summary

The Centers for Medicare and Medicaid Services’ (CMS) 340B drug pricing program requires drug manufacturers to provide outpatient drugs to eligible health care organizations/covered entities (CE) at significantly reduced prices. Decreased drug costs under the 340B program enables CEs to stretch scarce federal resources as far as possible, allowing them to reach more eligible patients and to provide more comprehensive services.

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Hospitals, drugmakers debate 340b drug discounts