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Support the 340B Drug Savings Program

Background

The 340B Drug Pricing Program (340B Program) administered by the Health Resources and Services Administration’s Office of Pharmacy Affairs (OPA) was established in 1992 by Federal statute. Section 340B of the Public Health Service Act limits the cost of covered outpatient drugs to covered entities enrolled in the 340B Program. Significant savings on pharmaceuticals may be seen by those entities that participate. Section 7101 of the Patient Protection and Affordable Care Act allows certain qualifying Critical Access Hospitals (CAH) to access 340B discounted drugs.

Participation in the 340B program has expanded in Iowa because of the Affordable Care Act. The Affordable Care Act opened the program to many of Iowa’s small and rural hospitals that were excluded previously. The 340B program has become a very important program not only to Iowa’s safety net and rural hospitals, but also to the Iowans living in communities with access to the 340B program. o Nearly 80 percent of Iowa’s Critical Access Hospitals (approximately 65 of Iowa’s 82 Critical Access Hospitals) have signed up to participate in the program.

Action Needed

  • Prevent cuts to the 340B drug savings program, which allows Iowa hospitals to provide financial assistance to patients unable to afford their prescriptions and invest in programs that improve access to care in communities.
  • For more than 20 years, the 340B Drug Pricing Program has provided financial relief from high prescription drug costs to certain hospitals. 340B is not a taxpayer-funded program and adds no cost to the government.
  • Efforts to scale back or add additional red tape to the program would hurt patients while adding to the record profi­ts of pharmaceutical companies.