340B

The US programme that requires manufacturers to sell drugs at deep discount to safety-net providers.

Definition

The 340B Drug Pricing Program (Public Health Service Act §340B) requires manufacturers participating in Medicaid to sell outpatient drugs at deep discount (~23% off AMP) to safety-net hospitals, FQHCs, Ryan White clinics, and similar covered entities. Combined value of 340B discounts exceeded $40B in 2023. Subject of ongoing legal disputes over contract-pharmacy eligibility.

Other commercial terms