340B Drug Pricing Program
The soaring cost of prescription drugs strains patients, providers, and government budgets. The 340B Drug Pricing Program provides relief by making drug discounts available to essential hospitals, which use the savings to provide and expand services to vulnerable patients.
States can protect this key source of support for the nation’s health care safety net is by ensuring providers can use 340B-purchased drugs for Medicaid beneficiaries. Under Health Resources and Services Administration rules, hospitals and other covered entities may choose to purchase covered outpatient drugs for Medicaid beneficiaries at 340B discounts (“carve in”) or not (“carve out”). States have begun to exercise this authority, through Medicaid state plan amendments or legislation, to dictate whether covered entities can make this choice.
States are pursuing several trends related to 340B, including carve-out policies, duplicate discounts, rebate policies, and more.
Questions
Contact us at state@essentialhospitals.org or 202.585.0100.
Michigan Enacts 340B Nondiscrimination Laws
March 8, 2022 ||The laws prohibit pharmacy benefit managers and insurance companies from discriminating against 340B Drug Pricing Program contract pharmacies and covered entities.
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State 340B Policy: Mandating Carve-In, Carve-Out Policies
July 19, 2021 ||
Recently, some states have started to direct providers on which carve-in or carve-out options they take so the state can claim its rebates without concern of duplicate discounts. This State Policy Snapshot examines the current landscape of state carve-in and carve-out policies.
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