THE PHS 340B DRUG PRICING PROGRAM: An Introduction

1. THE PHS 340B DRUG PRICING PROGRAM:An Introduction Zandra M. Glenn, Pharm D Program Development Consultant HRSA Pharmacy Services Support Center

2. The Plan Background 340B Basics Getting Started Pharmacy Service Options Getting Help Questions?

3. Background � The Uninsured 49 million Americans without health insurance in 2002 23% of Americans under 65 have no prescription coverage 10% of seniors eligible for Medicare Part D have no prescription coverage (4 to 5 million people)

4. Medication Access Strategies Medication Samples Patient Assistance Programs Drug Discount Cards Discounted Retail Pricing Bulk Donation/Purchasing Pharmacy Benefit Management 340B Drug Pricing Program

5. The PHS 340B DrugPricing Program Established in 1992 Provides discounts on outpatient drugs to covered entities Manufacturers that participate in Medicaid must also sign an agreement to participate in 340B Drug Pricing Program

6. Office of Pharmacy Affairs Administer the 340B program Promote access to comprehensive pharmacy services Develop innovative pharmacy service models Provide program technical assistance Serve as a Federal resource for pharmacy practice Website: www.hrsa.gov/opa

7. 340B Basics Benefit for Covered Entities Covered Entities include: Nation�s core of safety net providers Federal Grantees Some Non-Grantees

8. Federal Grantee Covered Entities Community health centers Migrant health centers Health centers for public housing Health centers for homeless AIDS clinics and drug purchasing programs Black lung clinics

9. Federal Grantee Covered Entities Hemophilia treatment centers Native Hawaiian health centers Urban Indian clinics/638 tribal centers 340s school-based programs Title X family planning clinics STD clinics TB clinics

10. Non-grantee Covered Entities Federally Qualified Health Center Look-alikes Certain Disproportionate Share Hospitals

11. Why 340B? Reduce prescription drug expenditures by safety net providers in order to: Expand health services access to: Low-income individuals/families Vulnerable populations Reduce taxpayer burden Average savings 25-50% for covered medications (NACHC Survey) Comprehensive Pharmacy Services

12. Estimated Prices For Selected Public Purchasers, as Percent AWPvon Oehsen; Pharmaceutical Discounts Under Federal Law: State Program Opportunities