Protect the Safety Net by Protecting 340B

Under the 340B program, manufacturers must offer discounts to safety net providers according to statutorily prescribed methods in exchange for the benefit of having their drugs covered by Medicaid and Medicare, a multi-billion-dollar benefit to manufacturers. The program ensures that a fraction of the profits manufacturers gain, including from federal payors, is invested in safety net providers at nearly no cost to taxpayers.

With their 340B savings, essential hospitals can target resources to services and programs that meet their community's unique challenges, often operating where others will not:

• A West Virginia essential hospital relies on 340B savings to support a mobile mammography unit. The 340B program makes this vital screening available to patients who might otherwise lack access.
• 340B savings at an essential hospital in Massachusetts support a complimentary home delivery service for prescriptions to enhance convenient access to care.
• An essential hospital in Utah uses 340B savings to facilitate a Medication Support Services program for any individual unable to afford their medications. It provides more than 18,000 prescriptions to patients each year at each of its five hospitals and 12 multi-specialty community clinics.
• A Florida essential hospital uses 340B savings to support patient access, including through a mobile stroke treatment unit that reduces mortality by 45% through time saved when compared with traditional emergency management services.

While the health care delivery system and prescription drug landscape continue to evolve-adding new complexities that America's Essential Hospitals stands ready to navigate-the core mechanics of the 340B program remain sound. We urge Congress and the administration to protect the 340B program and ensure all stakeholders comply with the law.