• 340B

Your questions, answered: 340B manufacturer pricing restrictions

Jul 29th, 2024

Drug manufacturers began implementing restrictions for 340B pricing in 2020, citing alleged misuse by safety-net providers and explosive growth of the 340B Drug Pricing Program. Since then, restrictions for the program, which offers savings on prescription drug costs for organizations serving a high population of people who are un- or underinsured, have increased and changed significantly, making it difficult for Covered Entities (CE) to stay on top of the changes and realize 340B savings.

Associate Director of Client Success Raquel Brown and her team work closely with over 400 CEs that Genoa Healthcare pharmacy supports, helping them navigate and fully leverage the benefits of 340B. We sat down with Raquel to learn more about the recent 340B pricing restrictions imposed by manufacturers and what CEs like yours can do to restore discount opportunities.

What manufacturer restrictions are you aware of?

37 manufacturers currently have restrictions for 340B drug pricing, which vary across both manufacturers and drugs. While some states are stepping in to regulate these restrictions, manufacturers are introducing and changing them frequently, which makes it difficult for CEs to keep up with requirements and continue receiving 340B discounts.

You can find a list of up-to-date restrictions on 340B Health or 340B Second Sight.

What do these restrictions mean for me and my clinic?

These restrictions can have a significant impact on your CE: They can decrease your 340B savings, and, if your clinic doesn’t receive the discount, you may not be able to provide your consumers with the services and care that rely on those savings.

I’m losing 340B savings opportunities. How can I restore that benefit?

The first step toward restoring your 340B pricing is understanding which restrictions apply to your clinic. Manufacturers will send your CE a letter to announce any restriction changes, and you can also stay up to date by reviewing websites that compile the restrictions, like 340B Health or 340B Second Sight.

Genoa is supporting the CEs we work with by helping them make sense of the restrictions, understand how they impact their clinic and outline what they should do to restore their 340B pricing. We provide CEs an analysis of which manufacturer’s drugs their providers are prescribing and guidance on optimization opportunities so they can continue getting the most out of the 340B Program and giving people the care they need.

What’s a 340B contract pharmacy and how do I partner with one?

A contract pharmacy is a pharmacy that a 340B-eligible CE has contracted and registered with to obtain 340B savings. If you’re looking to work with a contract pharmacy or are new to 340B, Genoa can help.

Learn more

Genoa works with CEs across the country to help them navigate and secure best-in-class pricing for 340B. Please email [email protected] if you’d like to learn how we can support your clinic and help you get the most out of 340B.

This information was accurate at the time of posting. Senior Client Relationship Manager Raquel Brown is part of the Optum Rx 340B team, helping CEs like yours navigate and fully leverage the benefits of 340B.

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