The 340b Drug Pricing Program is a federal program overseen by the Health Resources and Services Administration (HRSA) Office of Pharmacy Affairs. The program requires drug manufacturers to provide outpatient drugs to certain health care entities at significantly reduced prices so the remaining funds can provide services for more eligible clients and provide more comprehensive services. This process allows Medicaid to share in the savings generated by the 340B Program.  340b refers to the section of the Public Health Service Act requirements.

Providers eligible for the 340B program are called covered entities. Federal law requires covered entities to include hospitals and other federal grantees. Each type of covered entity has rules regarding its participation in the program.

Pharmacies identified as a Federally Qualified Health Center (FQHC) do not qualify for reimbursement through Medicaid. FQHCs are reimbursed by a total encounter rate for all services under the Veterans Health Care Act of 1992.

Refer to the HRSA website at for educational resources, eligibility requirements, FQHC information, and registration information about the 340B program.