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State Opportunities under the 340B Drug Discount Program

OVERVIEW OF 340B PROGRAM. Eligible entities include high Medicaid acute care hospitals owned by or under contract with state or local government; community health centers; ADAPs; family planning clinics; AIDS, TB and STD clinics; and other HRSA granteesUse of drugs limited to patients" of 340B cov

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State Opportunities under the 340B Drug Discount Program

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    1. State Opportunities under the 340B Drug Discount Program by Bill von Oehsen Counsel Public Hospital Pharmacy Coalition Phone: 202-872-6765 Email: william.vonoehsen@ppsv.com

    2. OVERVIEW OF 340B PROGRAM Eligible entities include high Medicaid acute care hospitals owned by or under contract with state or local government; community health centers; ADAPs; family planning clinics; AIDS, TB and STD clinics; and other HRSA grantees Use of drugs limited to “patients” of 340B covered entity Discounts are calculated using the Medicaid rebate formula; but 340B pricing is better because (1) sales do not involve retail pharmacies thereby avoiding retail mark-ups and (2) 340B providers regularly negotiate sub-ceiling prices Medicaid must be billed at acquisition cost to avoid duplicate discounts

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