340B Program
Established by Congress in 1992, the 340B Program requires pharmaceutical manufacturers to sell outpatient drugs at a discount to qualifying providers. By enabling these providers to pay lower prices for certain prescription drugs, the intent is to enable them to spend the savings realized from the 340B program to serve more patients and provide more comprehensive services. However, over the past 15 years, the 340B program has grown significantly in size and scope.
Between 2023 and 2024, recent court decisions have uniquely positioned states as the regulator of issues pertaining to the 340B federal program, specifically relating to how pharmaceutical manufacturers must engage with 340B contract pharmacies, are allowed to set reimbursement policy with 340B qualifying providers, or how manufacturers are allowed to contract with those providers.
At MultiState, we’re actively tracking and analyzing hundreds of bills impacting core 340B issues, including but not limited to:
Dictates how manufacturers are to engage with 340B contract pharmacies.
Establishes limitations on how insurers and pharmacy benefits managers (PBMs) may contract with 340B providers.
Establishes requirements for reimbursement and price of pharmaceutical drugs delivered and dispersed by 340B providers.
Implements transparency requirements for 340B providers, inclusive of how any net savings are benefiting the community.