C-Suite Cheat Sheet: 340B Drug Pricing Program

Executive Summary

The Health Resources & Services Administration’s (HRSA) 340B drug pricing program requires drug manufacturers to provide outpatient drugs to eligible health care organizations/covered entities (CEs) at discounts ranging from 20%-50%. 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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