340B DRUG PRICING PROGRAM
What is 340B?
Section 340B of the Public Health Service Act requires pharmaceutical manufacturers to enter into an agreement,
called a pharmaceutical pricing agreement (PPA), with the HHS Secretary in exchange for having their drugs covered
by Medicaid and Medicare Part B. Under the PPA, the manufacturer agrees to provide front-end discounts on
covered outpatient drugs purchased by specific providers, call “covered entities,” that serve the nation’s most
vulnerable patient populations.
Who can be considered a “covered entity?”
It includes six categories of hospitals: disproportionate share hospitals, children’s hospitals and cancer hospitals
exempt from the Medicare prospective payment system, sole community hospitals, rural referral centers, and critical
How does the program work?
If you meet the criteria of a “covered entity,” you can apply to participate in 340B by completing the online
registration process during the first two weeks of any calendar quarter (January 1-15, April 1-15, July 1-15, October 1-
15). If your registration is approved, you will be eligible for discounts starting the first day of the next calendar
How do “covered entities” obtain discounts?
Upon registration, a covered entity should contact its wholesaler to set up its 340B account. The wholesaler will
process the covered entity’s orders under the 340B account and deliver the 340B drugs to the covered entity in
accordance with the covered entity’s wholesaler agreement.
What are the benefits?
- Program participants can save an estimated 20-50% off drug costs
Link for instructions and registration
Helpful links for more information regarding eligibility, program details, and program benefits