340B - Safeguard Availability of Life-Saving Treatment
What You Need to Know:
The legislative intent of the 340B program, created by Congress more than 30 years ago, is to “stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.”
It protects patients and health care providers from high drug costs – all at no additional cost to taxpayers.
Key Points/Hospital Perspective:
- Congress created the 340B program over 30 years ago to support safety net providers – including hospitals, community health centers, family planning and HIV/AIDS clinics – in providing life-saving and affordable medicines and a broad range of health services to low- income, uninsured, and underserved patients.
- Colorado has 68 hospitals that participate in the 340B program, nearly 90 percent of which operate with a thin or negative margin. Hospitals use 340B benefits to provide affordable medications, financial assistance programs, and critical services like community health outreach, cancer treatment, OB/GYN services, and care in underserved areas.
- In recent years, pharmaceutical companies have acted unilaterally to restrict this program, jeopardizing its purpose. These abuses must be stopped.
CHA Contact: Bridget Frazier, senior manager of public policy | [email protected]
How do patients benefit from 340B?
How do patients benefit from 340B?
This program allows safety-net hospitals in all corners of Colorado to stretch precious resources for essential programs like:
- Access to low-cost, life-saving prescription drugs
- Health care and financial assistance programs for low-income patients
- Trauma care
- Burn treatment
- Obstetrics
- Behavioral health
- Opioid use disorder treatment
- Ambulatory care pharmacists
- Direct medication benefits
- Free vaccines
- Connecting families with community-based partners
