340B

Overview

The federal 340B Drug Pricing Program was created to assist safety-net providers “to stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.” Since then, this program has become critically important to Community Health Centers. It allows health centers to purchase outpatient medications at significantly reduced costs, enabling them to provide affordable discounted or free medications to uninsured and underinsured patients. By law and statute, health centers are required to invest every penny of 340B savings into activities that expand access for their patients. The 340B program generates savings that are reinvested in the health center to meet the unique needs of their communities like dental care, behavioral health, specialty care, translation services, food banks, housing support, and co-pay assistance programs.

NACHC monitors policy and regulatory issues related to 340B closely. Visit our 340B Policy page.