Script It Forward: Understanding the 340B Program

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340B Program: Helping underserved communities receive the medication and health care they need at an affordable price.

What is 340B?

As part of the bipartisan Veterans Health Care Act of 1992, Congress created the 340B Drug Pricing Program. The 340B Program allows qualifying entities to buy prescription drugs at discounted prices from drug manufacturers. Administered by the federal government’s Health Resources and Services Administration (HRSA), an agency of the Department of Health and Human Services (HHS), the 340B Program enables Covered Entities to stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.

How does 340B work?

Drug manufacturers provide drugs at discounted prices to eligible healthcare organizations and Covered Entities. Manufacturers that offer their products in the Medicaid program are required by law to offer 340B prices on those drugs. As your 340B contract pharmacy partner, we can assist you as a 340B Covered Entity making 340B purchases. We then bill your patient’s insurance at the regular contracted drug price and pass the 340B savings on to your organization. You can then use these savings to fund other services and offer care to patients who otherwise can’t afford it.

How does Avita Pharmacy fit into all of this?

Many organizations choose to dispense 340B medication to patients by partnering with a contract pharmacy like Avita Pharmacy. As part of our partnership, we function as an extension of your organization and work hard to align with your organization’s goals and objectives.

Avita Pharmacy acts as a contract pharmacy in the 340B Program to fill eligible 340B prescriptions for our Covered Entity partners, just like YOU.
Avita Pharmacy provides 340B administration services (i.e. TPA) for most of our Covered Entity partners. These services include claim qualification, inventory handling and replenishment, and monthly settlement of claims, cash transfer, and reporting.

How does 340B benefit both your clinic and your patients?

340B funding can help you expand services to your community, allowing many Covered Entities to:

Make eligible medications available at reduced or no cost to patients.
Offer programs to promote medication adherence.
Provide more comprehensive services at little or no cost to eligible patients.
Support community sponsored events.
Hire additional clinical staff.
Expand physical facilities.
Subsidize patients’ insurance and/or copays.

Patients