Through the federal 340B Drug Pricing Program, pharmaceutical manufacturers sell drugs used in eligible safety net hospitals’ outpatient settings at discounted prices. Participating entities can achieve savings of 25% to 50% on pharmaceutical purchases. Hospitals reinvest 340B savings for a wide range of purposes, including providing low-cost or free prescriptions for uninsured and low-income populations, expanding the service lines they offer and providing services to more patients. The 340B program involves no federal spending. Currently, over one in four Texas hospitals participate in the program.
THA is advocating for policies to make sure 340B continues working as intended, and monitoring efforts to enact policy changes that would weaken the program – and, as a result, weaken the health care safety net.
State policy:
- THA supports prohibiting drug makers from restricting contract pharmacies’ participation in 340B, which would both reduce patient access to these essential pharmaceuticals and take operating funds out of the pockets of Texas hospitals.
Federal policy:
- THA supports increasing transparency requirements for insurers and opposing duplicative reporting mandates on hospitals, which already have stringent requirements tied to the program.
- THA opposes turning 340B into a rebate or credit program in which insurers would supply funds on the back end, instead of through the current upfront discount system.
Protect Participation in the 340B Drug Pricing Program
Learn what THA is advocating for at both the federal and state levels levels to ensure a robust 340B program.
Saving the Savings: Keep the 340B Drug Program Accessible for Our Hospitals and Patients
THA President/CEO John Hawkins details the success of the 340B program and THA’s efforts to make sure it works as intended.
Commit to AHA’s 340B Good Stewardship Principles
Texas hospitals that are members of the American Hospital Association are encouraged to commit to AHA’s Good Stewardship Principles related to the 340B Drug Pricing Program. Demonstrating this commitment means sharing publicly how 340B hospitals reinvest savings to benefit the community by providing more comprehensive services for eligible patients. Hospitals participating in the program also should structure their policies and procedures to support the Good Stewardship Principles. Commit to 340B Good Stewardship Principles by submitting AHA’s commitment form. Additional details, including the list of principles, a model letter for comments on potential remedies for unlawful 340B payment cuts, frequently asked questions document and a tool to calculate 340B savings are available to AHA members from AHA’s 340B Web page.