The 340B Program

The 340B Drug Discount Program was created in 1992 by the federal government, and requires drug manufacturers to provide significant discounts for outpatient drugs to eligible healthcare organizations, also known as “covered entities.” The program is designed to provide financial benefits to covered entities that serve low-income and uninsured patients. This enables covered entities to expand healthcare services to better serve their communities, and to improve access to more affordable medications for their low-income and uninsured patients.

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