What is the 340B Drug Pricing Program?
Section 340B of the Public Health Service Act (PDF - 39 KB) requires drug companies that participate in Medicaid to enter into a pharmaceutical pricing agreement (PPA).
How does the program help patients?
The program helps reach more patients by stretching scarce federal resources. Drug companies must sell prescription drugs at reduced prices to health care organizations that care for people most in need.
How much can health care organizations save through the program?
The Government Accountability Office (GAO) reported that health care organizations saved an estimated 20-50% in drug costs in 2015.
What are some ways organizations use the money they save?
Health care organizations can provide:
- free care for uninsured patients;
- free vaccines;
- services in mental health clinics; and
- medication management and community health programs.
How can my clinic register for the program?
You can register online through the Health Resources and Services Administration (HRSA)'s Office of Pharmacy Affairs (OPA).
Success Stories: How Two Black Lung Clinics Used 340B Program Savings to Help Patients
Below are two Black Lung programs that participate in the 340B Drug Pricing Program through their hospital and health center. Both use their drug cost savings to improve and expand patient care.
Genesis Healthcare System - Genesis Lung Clinic and Black Lung Program
Genesis Healthcare hired a clinical pharmacist and expanded their Low Dose CT Scan program.
What does the clinical pharmacist do?
- Reviews medication histories;
- Updates medication lists;
- Reviews medication lists for drug interactions, drug-disease state interactions, and adverse events;
- Makes medication recommendations to providers;
- Educates patients on medication use, technique, and storage; and
- Gives patients educational materials about over-the-counter medications.
How has the Low Dose CT Scan program helped?
The program grew by 225% in just one year. This means the hospital can help more miners with greater success.
Canyonlands Healthcare – Black Lung Clinic Program
Canyonlands Healthcare opened their first 340B in-house pharmacy in late 2016. It offers a sliding fee scale, pharmacist-led clinical programs, and the newest addition, the Chilchinbeto Telepharmacy.
The clinic helps coal miners and other patients in the community receive medications. The clinic uses the 340B savings to expand the pharmacy’s reach.
What is the Chilchinbeto Telepharmacy?
The Chilchinbeto Telepharmacy is one of the first of its kind in Arizona.
The clinic is in a remote part of the Navajo Nation Indian Reservation. The nearest full-service pharmacy is two hours away. There aren’t enough patients to support a full-time pharmacist and staff.
How does the tele-pharmacy work?
By using image-capture and tele-conference technologies, the clinic can staff a small pharmacy with a technician. A pharmacist, located off-site, verifies the prescriptions and counsels patients remotely.
Through this technology, they meet the needs of the Chilchinbeto coal miners and the community.