For 25 years, the 340B Prescription Drug Savings Program has provided hospitals with financial help to expand access to life-saving prescription drugs and comprehensive health care services to low-income and uninsured individuals in communities across the country.  Improving the health of their communities is at the heart of every hospital’s mission, and they deliver on that promise every day.  In 2015 alone, 340B tax-exempt hospitals provided over $50 billion in total benefits to their communities across the country.

New Hampshire hospitals who participate in the 340B Prescription Drug Program pass along the savings they receive from the program to their patients, as the program generates valuable savings for eligible hospitals to provide free or reduced priced prescription medications to vulnerable patient populations.  In addition, it allows hospitals to reinvest in health care programs that enhance patient services, offer free vaccines, and provide services such as those within mental health clinics, medication management programs and community health programs.  Currently, 14 New Hampshire hospitals qualify and participate in the 340B program.

Section 340B of the Public Health Service Act requires pharmaceutical manufacturers participating in Medicaid to sell outpatient drugs at discounted prices to health care organizations that care for many uninsured and low-income patients.  340B hospitals use the savings they receive on the discounted drugs and reinvest them in programs that enhance patient services and access to care, as well as provide free or reduced priced prescription drugs to vulnerable patient populations.  Participating hospitals can achieve savings of 25 to 50 percent on pharmaceutical purchases.  To qualify for the 340B program, hospitals must serve a disproportionate share of low-income and uninsured people or be critical access hospitals providing essential services to their rural communities. These hospitals must also provide services to low income populations that do not qualify for Medicaid or Medicare.  And the 340B program involves no federal spending.

Established by Congress in 1992, the 340B Prescription Drug Program was designed to play an important role in helping hospitals stretch already scarce resources to expand access to care, enhance community outreach programs and offer unique health services like free vaccines, clinical pharmacy benefits and smoking cessation classes.  This includes, but is not limited to, improved access to outpatient prescribed prescription medications. Given the increasingly high cost of prescription medications, the program is as relevant now as it was when Congress established it over 25 years ago.

New Hampshire hospitals participating in the 340B Prescription Drug Program do so because it allows them to provide low-cost or free prescriptions, expand services and improve access to care for New Hampshire’s uninsured and low-income populations. 

 

340B Infographic

AHA 340B Factsheet

340B Fact vs. Fiction

340B Prescription Drug Program Community Benefit Analysis