The Prime Vendor supports the HRSA 340B Drug Pricing Program as a voluntary program for covered entities and manufacturers.
HRSA contracts with a prime vendor to provide education and technical assistance to all 340B stakeholders. Additionally, the PVP negotiates pricing discounts with participating manufacturers and establishes minimum standards for distribution to ensure access to affordable medications.
The 340B Drug Pricing Program is administered by the federal government’s Health Resources and Services Administration (HRSA), which is an agency of the Department of Health and Human Services. Manufacturers that offer their products in the Medicaid program are required by law to offer 340B prices on those drugs. Only certain types of health care providers qualify for 340B discounts. These include hospitals that serve indigent and uninsured patients and clinics recognized as government grantees that provide primary care to low-income individuals.
A statutory formula determines the 340B ceiling price, the highest price a manufacturer can charge to covered entities enrolled in the 340B Program. Without the savings generated by the 340B Program, many safety-net hospitals and clinics would have to reduce services for low-income individuals—or, in some cases, close their doors and cease providing services.
Apexus, the HRSA 340B Program Prime Vendor, supports safety-net hospitals and clinics by negotiating additional discounts with participating manufacturers, which generates even greater savings than the 340B price provides.
In addition to negotiating additional price savings with manufacturers, the PVP establishes minimum standards for distribution. These services help ensure access to 340B drug prices to even the smallest clinics. Further, the 340B Prime Vendor Program supports safety-net providers that cannot attract staff who can interpret and operationalize the program by offering 340B education and on-call assistance services.
Watch 340B OnDemand Module 1, “Introduction to the 340B Drug Pricing Program,” and get the basics in less than 15 minutes.