Protection of the 340B Program
Key Points
- 340B is a drug program in which manufacturers sell covered entities at lower prices to decrease the cost of medications for patients.
- Covered entities are pharmacies that meet certain requirements to access these drugs at a lower cost from the manufacturers.
- Currently, there are no laws protecting this program from manufacturers, PBMs, or insurers in the state of Indiana which may result in decreased patient access to life-saving medications.
What is the issue?
Lower Reimbursement – Because there are no laws protecting the 340B program, covered entities may be reimbursed at a lower rate. Problem – May decrease patient’s access to essential medication.
Unnecessary Requirements – Manufacturers can have certain requirements, including pricing data submission, for covered entities solely because of their 340B status. Problem – Manufacturer’s discrimination of these covered entities may limit access to medications.
Other States – Many other states are adopting language in their laws to protect the 340B-covered entities. These prohibit manufacturers from denying, restricting, prohibiting, or discriminating against covered entities and hold PBMs and insurers accountable for appropriate reimbursement. Problem – Indiana currently has no laws protecting this program.
Impact of Legislation
Protecting the 340B program ensures patient access to healthcare and at an affordable price to both the patient and the pharmacy.
Next Steps for Indiana
Pass legislation to protect 340B laws and ensure that Hoosiers can access and afford their necessary, and often life-saving, medications.