Fact Sheet

340B Drug Discount Program Pocket Card

PhRMA March 14, 2017

The 340B Drug Discount Program was created in 1992 by Congress to help uninsured or vulnerable patients access prescription medicines through safety net facilities. As part of the program, manufacturers provide steep, mandatory discounts on medicines to certain types of clinics and hospitals as a condition of their medicines being covered by Medicaid. Clinics eligible for the 340B program as part of a federal grant program are required to reinvest any additional resources into services for the vulnerable communities they serve, while current rules allow hospitals participating in the program to profit by reselling discounted medicines with no requirement to ensure patients benefit from the discounts.