340B Health


What is 340B?

Section 340B of the U.S. Public Health Service Act provides that drug manufacturers that choose to participate in Medicare and Medicaid sell certain outpatient drugs to eligible safety-net providers at a discount. These providers then use the savings to “stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.” Learn more about 340B.

Drug Manufacturers are Refusing to Provide Required 340B Discounts

Five major drug manufacturers – Eli Lilly, AstraZeneca, Sanofi, Novo Nordisk, and United Therapeutics – have unilaterally stopped providing required 340B discounts when drugs are dispensed at community pharmacies. Novartis has stopped providing 340B pricing to hospitals on drugs dispensed at community pharmacies that are more than 40 miles away from the hospitals’ parent sites. Merck is threatening similar actions against hospitals that do not hand over patient claims data. 

These actions are in violation of the 340B statute, which states that manufacturers “must provide” 340B pricing on any eligible drug to any eligible covered entity regardless of how the hospital intends to dispense the drug.

Without access to 340B discounts, millions of patients could be at risk of losing access to a wide range of services they rely on to stay healthy.

We are calling on Secretary of Health and Human Services Alex Azar to use his authority to put a stop to these harmful actions and protect patients and the providers who care for them. 

Stories of How 340B Hospitals Use Community-based Pharmacy Partnerships to Benefit Patients 


  • Read a letter from seven national organizations to Secretary Azar.  
  • Read a letter from more than 1,100 safety-net hospitals participating in 340B to Secretary Azar. 
  • Read a letter from a bipartisan group of 28 U.S. senators to Secretary Azar. 
  • Read a letter from a bipartisan group of more than half of the members of the U.S. House of Representatives to Secretary Azar.   
  • Read a letter from more than 60 advocacy groups for patients and social justice to Secretary Azar.