Section 340B of the Public Health Service Act was enacted through passage of the 1992 Veterans Health Care Act. The 340B program sometimes referred to as PHS pricing or 602 pricing, enables certain Federal facilities to obtain dramatic discounts on outpatient drugs. In order to participate in the Medicaid program pharmaceutical manufacturers are required to participate in 340B. Consequently, drugs purchased through this program have extremely discounted prices. On average, 340B drugs cost 20 to 40 percent of the Average Wholesale Price (AWP). Drugs purchased through the 340B program can only be used by the covered entities' patients, and covered entities cannot "double-bill" by including those drugs in the state Medicaid rebate program.
If you would like further information on the 340B program, or to find out how to apply, please feel free to ask the pharmacist.
