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MARKET ACCESS

Understanding the 340B Drug Discount Program

The 340B Drug Discount Program is a federal program in which manufacturers provide Medicaid-like discounts on covered outpatient drugs to qualifying hospitals and clinics. The program is highly complex and non-transparent, and IQVIA can help you understand how it's evolving.
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Locations United States Our U.S. Solutions Life Sciences Commercial Solutions Market Access Solutions Contract and Revenue Management Gross-to-Net 340B Drug Discount Program

EVOLUTION OF THE 340B PROGRAM

How 340B Works

Fact Sheet
Unintended Consequences: How the Affordable Care Act Helped Grow the 340B Program
White Paper
Unintended Consequences: How the Affordable Care Act Helped Grow the 340B Program
White Paper
The 340B Drug Discount Program Grew to $124B in 2023
Fact Sheet
Research Summary: The Cost of the 340B Program Part 2: 340B Revenue Sharing
Fact Sheet
Research Summary: The Cost of the 340B Program Part 1: Self-Insured Employers
White Paper
The Cost of the 340B Program Part 2: 340B Revenue Sharing
White Paper
The Cost of the 340B Program Part 1: Self-Insured Employers
Fact Sheet
Are 340B Discounts Directly Subsidizing Insured Patients or their Plans?
White Paper
Are 340B Discounts Directly Subsidizing Insured Patients or their Plans?
White Paper
Are Discounts in the 340B Drug Discount Program Being Shared with Patients at Contract Pharmacies?
White Paper
Can 340B Modifiers Avoid Duplicate Discounts in the IRA?
White Paper
The 340B Drug Discount Program: Complexity, Challenges, and Change
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EVOLUTION OF THE 340B PROGRAM

340B Size and Growth

Fact Sheet
Double Trouble: How Expanding Eligibility Could Double the Size of the 340B Program
White Paper
Double Trouble: How Expanding Eligibility Could Double the Size of the 340B Program
White Paper
The 340B Drug Discount Program Exceeds $100B in 2022
Blog
340B Program Continues to Grow While Contract Pharmacy Restrictions Take Effect
By: Rory Martin
Blog
Growth of the 340B Program Accelerates in 2020
By: Rory Martin, Shiraz Hasan
Blog
340B Drug Discount Program Growth Drivers
By: Shiraz Hasan, Sofi Peterson
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340B patient discount sharing

One of the defining features of the 340B program is there's no requirement for 340B discounts to directly benefit patients: 340B revenue is given to 340B hospitals and clinics which may use it to support activities such as uncompensated care programs. IQVIA is conducting a series of studies of how much 340B revenue is being shared directly with patients, and which kinds of patients are benefiting.
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Impact of The Inflation Reduction Act on 340B

The Inflation Reduction Act (IRA) of 2022 introduced provisions requiring the identification and removal of 340B transactions from Medicare to avoid duplicate discounts. CMS has proposed the use of 340B modifiers—flags on claims indicating the use of 340B product—to achieve this. IQVIA has explored the usage of 340B modifiers and how they will impact the industry going forward.
EXPLORE THE IMPACT
Rory Martin

PhD, Senior Principal, Market Access Center of Excellence

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