The 340B Prescription Drug Discount Program

Origins, Implementation, and Post-Reform Future

by Andrew W. Mulcahy, Courtney Armstrong, Jeffrey Lewis, Soeren Mattke

View related products

Download Free Electronic Document

FormatFile SizeNotes
PDF file 0.3 MB

Use Adobe Acrobat Reader version 7.0 or higher for the best experience.

Abstract

The federal 340B Drug Pricing Program lowers outpatient drug prices for specific categories of "covered entity" hospitals and clinics. Covered entities can access 340B drug pricing for all of their eligible patients, including those with insurance. The program has always generated some level of controversy, but more in recent times. Drug manufacturers and safety net providers are using a wide array of tools and outlets — including interest groups, lobbying, and media — to share their divergent perspectives on the purpose and appropriate role of 340B. While interest groups are becoming more vocal, the federal government is simultaneously implementing changes in program administration and oversight in response to internal and external calls for transparency and accountability. This Perspective presents the history, current status, and future trajectory of the 340B program.

Research conducted by

The research described in this report was performed under the auspices of RAND Health.

This report is part of the RAND Corporation perspective series. RAND perspectives present informed perspective on a timely topic that address the challenges facing the public and private sectors. All RAND perspectives undergo rigorous peer review to ensure high standards for research quality and objectivity.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.