What must pharmacies contracted with the 340B program demonstrate?

• A. They can stock all formulary drugs
• B. They can renegotiate pricing with manufacturers
• C. They meet criteria to participate and document that discounted drugs are dispensed to intended patients
• D. They can dispense non-formulary drugs without approval

Answer: (C)

The key idea here is program integrity and beneficiary eligibility. 340B contracts hinge on pharmacies showing they meet the program’s participation criteria and have a reliable system to ensure discounted drugs are actually dispensed to patients who are eligible for those discounts. This documentation and verification helps prevent diversion and guarantees that the savings reach the intended, qualifying patients.

That’s why this option is the best fit: it directly states that contracted pharmacies must demonstrate eligibility to participate and keep records showing discounted medications are given to the intended patients. Storing all formulary drugs, renegotiating prices with manufacturers, or dispensing non-formulary drugs without approval aren’t requirements of the 340B contract pharmacy framework.