How Covered Entities Can Successfully Navigate 340B Changes
In 1992, Section 340B of the Public Health Service Act was passed. This law requires pharmaceutical manufacturers participating in Medicaid to sell outpatient medications at discounted prices to health care organizations (also known as covered entities or CEs) that qualify.1 Because qualification is dependent on the number of uninsured or low-income patients served, the intent of the program is to help covered entities offset the cost of care. The program has grown since then. In 2021 alone, covered entities purchased $43.9 billion worth of discounted medication under the…
