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.
Template: Calculating Estimated 340B Program Savings (PDF)