340 B Program-Helps Low-Income Individuals and Their Health Care Providers

In 1992, Congress established the 340B program to help health care providers serve low-income people. The law requires pharmaceutical manufacturers participating in the Medicaid program to provide discounts  on covered outpatient drugs purchased by participating essential community providers.

The 340B program serves as an important foundation for designated health care providers, which rely on the significantly reduced prices offered by pharmaceutical companies to stretch scarce dollars and ensure that low-income, uninsured, and underinsured Americans have access to affordable, quality health care.

Women’s health centers, like Planned Parenthood affiliate health centers, have struggled to keep pace with the rising cost of providing care, including the dramatically increasing price of prescription drugs. In order to ensure that patients can continue to access primary health care services, Planned Parenthood urges Congress to update the 340B program to include women’s health centers that are not currently eligible for the program but that make up a critical component of our nation’s community health providers.

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