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    Prescription Drugs and 340B Drug Pricing Program


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    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)

    Medicaid Issues

    Comment Letter (PDF)

    Additional Resources