340B Program Update

The Patient Protection Affordability Care Act expanded the 340B Drug Pricing program to CAHs for outpatient drugs. A last-minute change to the legislation eliminated newly-eligible hospitals’ ability to use the 340B program for “orphan drugs”, or drugs intended to treat rare forms of disease. This exception could have an impact on rural hospitals’ ability to treat patients with cancer or other rare diseases. Additionally, because of limitations the 340B program has on using group purchasing organizations, participating hospitals could pay more for orphan drugs than prior to health reform. To read more on CRHC’s Policy Blog, click here. Information about the 340B program is available online at the HRSA Pharmacy Services Support Center (PSSC), HRSA Office of Pharmacy Affairs, and 340B Prime Vendor Program.