The 340B Drug Pricing Program—established under Section 340B of the Public Health Service Act— allows certain hospitals and clinics to buy outpatient prescription drugs at a discount of 25 percent to 50 percent. Recent data suggests discounted purchases under the 340B program reached $44 billion in 2021. Extensive litigation related to the 340B program, in addition to potential legislative and regulatory responses could have significant consequences on health care costs and drug pricing going forward.
