What is the 340B Drug Pricing Program?

• A. A federal program created in 1992 enabling discounts to purchase specified drugs at a 20% to 50% price reduction
• B. A federal program created in 1992 enabling discounts to purchase specified drugs at a 30% to 70% price reduction
• C. A private program for discounting to large hospital chains
• D. A program that sets drug prices for all patients at 10%

Answer: (A)

The main idea here is that the 340B program is a federal effort that requires drug manufacturers to provide substantial discounts on outpatient medications to eligible health care providers. Created in 1992, its aim is to help safety-net and other qualifying organizations stretch scarce resources so they can treat more patients, including the uninsured and underinsured. The discounts are significant—about 20% to 50% off the listed price—though the exact amount varies by drug and manufacturer arrangements. It’s not a private program for large hospital chains, and it doesn’t set prices for all patients or apply to inpatient medications purchased by hospitals. Instead, it targets outpatient drug purchases by covered entities under federal rules designed to support care for underserved populations.