Medicare provides coverage for prescription drugs that are furnished in the inpatient and outpatient settings under the Medicare Inpatient Prospective Payment System (IPPS) and Outpatient Prospective Payment System (OPPS) regulations, respectively. Medicare also provides coverage for prescription drugs furnished through a pharmacy under the Medicare Advantage and Part D programs. Medicare makes changes to the reimbursement and coverage of prescription drugs on an annual basis.
The Health Resources and Services Administration (HRSA) administers the 340B Drug Pricing Program, which allows safety-net hospitals to purchase outpatient drugs at a discount from manufacturers. This allowance provides communities with access to lifesaving services at no cost to taxpayers because the financial support comes from manufacturer discounts. Hospitals use the savings they receive to provide services to low-income and uninsured patients. Meanwhile, the AAMC advocates on behalf of members to ensure the maintenance of discounts through the 340B Program and that these savings can continue to support low-income and uninsured patients.
Learn about the AAMC’s advocacy and analysis using the resources listed below.
340B Drug Pricing Program
Letters and Briefs (PDF)
- AAMC Joint-Association Letter on Inflation Reduction Act Rebates on Part D Drugs (2024)
- AAMC-Joint Association Letter on Inflation Reduction Act Guidance on Effectuation of Maximum Fair Price (2024)
- AAMC Comment Letter to CMS 340B Remedy (2023)
- AAMC Comment Letter to HRSA on 340B Administrative Dispute Resolution Process (2023)
- AAMC/American Hospital Association (AHA) Brief Submitted to U.S. Supreme Court in AHA v. Becerra (340B Case) (2021)
- AAMC Joint-Association Letter to Department of Health and Human Services (HHS) Urging Secretary to Prevent Drug Companies From Denying 340B Discounts (2021)
Medicaid Issues
Comment Letter (PDF)
- AAMC Comment Letter on Medicaid Prescription Drug Value-Based Purchasing Program Proposed Rule (2020)