BPHC - Introduction to 340B

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Office of Pharmacy Affairs

Introduction to the 340B Program

The 340B Drug Pricing Program resulted from enactment of Public Law 102-585, the Veterans Health Care Act of 1992, which is codified as Section 340B of the Public Health Service Act. Section 340B limits the cost of drugs to federal purchasers and to certain grantees of federal agencies. Significant savings on pharmaceuticals may be seen by those entities that participate in this program.

You may be confused by the terms "PHS Pricing," "340B Pricing," and "602 Pricing." It is the same program and the same discount. You may also hear the terms "ceiling price" and "discount price." Here again, they are the same.

How does an organization become eligible for the 340B discount?

First, the organization must be a grantee of an eligible grant program, a federally qualified health center lookalike (FQHCLA) or a disproportionate share hospital (DSH) that meets certain requirements. The law is very specific regarding the types of programs that may participate. Click on this link for details on which programs are eligible.

If you find that your organization is an eligible program or DSH, you must submit a request to participate to the Office of Pharmacy Affairs (OPA) with your Medicaid billing information. For entities OTHER THAN DSHs or STD/TB grantees, this form, properly filled out and authenticated, will meet the requirement. Print it, fill it out and mail it to us.

DSHs must use the forms found at this link (required forms differ depending on whether the DSH is a Private Nonprofit entity or a Public Hospital). Further information for DSHs may be found at the DSH FAQs link.

STD/TB grantees, must use the forms found at this link.

It is very important that OPA have information that is accurate and up to date, particularly the covered entity's exact name and street address. It is the responsibility of each covered entity to contact the OPA with any changes.

While the entity is eligible to participate in the program by virtue of its status, it must notify the OPA of its intention to participate by completing and submitting the appropriate registration form.

Once the OPA receives this information, the entity will be eligible to receive pharmaceuticals at the 340B discounted price beginning the next calendar quarter. The quarterly deadlines for data submission to OPA are December 1 for the quarter beginning January 1; March 1 for the quarter beginning April 1; June 1 for the quarter beginning July 1; and September 1 for the quarter beginning October 1. It is the entity's responsibility to tell its wholesaler or manufacturer that it is registered for 340B discount prices when it places an order.

If you have any questions regarding this program, please call the Pharmacy Services Support Center at 800-628-6297.

If you have questions or comments, contact the Pharmacy Services Support Center.