Understanding 340B

What you need to know:

The legislative intent of the 340B program, created by Congress more than 30 years ago, is to “stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.”

It protects patients and health care providers from high drug costs – all at no additional cost to taxpayers.

Key Points/Hospital Perspective:

• Congress created the 340B program over 30 years ago to support safety net providers – including hospitals and community health centers – in providing life-saving and affordable medicines and a broad range of health services to low- income, uninsured, and underserved patients.
• Iowa has 101 hospitals that participate in the 340B program. Hospitals use 340B benefits to provide affordable medications, financial assistance programs, and critical services like community health outreach, cancer treatment, OB/GYN services, and care in underserved areas.
• In recent years, pharmaceutical companies have acted unilaterally to restrict this program, jeopardizing its purpose.