Main Purpose Of The 340B Pharmacy Program
This is a program that was began in 1991 with an aim of lowering pharmaceuticals cost, pharmaceuticals that were reimbursed by Medicaid agencies belonging to the state. This program is a program that requires drug companies to get into an agreement with the Department of Health and Human Services so as to be in a position to have their drugs covered by Medicare and Medicaid. In this program drug manufacturers are supposed to pay rebates to the state Medicare and Medicaid programs so as to have their outpatients drugs covered.
There are a number of hospitals who are eligible to participate in the 340B pharmacy program. These hospitals are dived into various categories which include Sole Community Hospitals, Critical Access Hospitals, Rural Referral Hospitals, Children’s Hospitals and Cancer Hospitals and Disappropriate Share Hospitals. These hospitals also have to meet certain requirements which include; the hospital must be operated or owned by local or state government, a private or public corporation which must be granted governmental powers by the local or state government and a private non-profit organization which must have been contracted by the local or state government to give care to individuals who have low incomes and do not have the ability to qualify for Medicare or Medicaid. Main requirement that applicants need to consider are a covered entity, a hospital must have qualified patients and a hospital must practice the required drug distribution methods as well as have the appropriate price setting formula.
The 340B pharmacy program is administered by the Office of Pharmacy Affairs which is part of the Health Resources and Services Administration. The Office of Pharmacy Affairs and the Health Resources and Services Administration are situated in Rockville, MD. Both bodies are responsible for the implementation of the 340B pharmacy program. There are no federal restrictions that come with the implementation of the 340B pharmacy program. However, the law prohibits hospitals from using 340B pharmacy for Medicaid and Medicare drugs that are strictly subject to rebates. Unless the coverage entity involved complies with certain specific requirements. One advantage that comes with using the 340B pharmacy program is the fact that, all its participants are in a position to save since the program is cheaper than retail and wholesale prices. The 340B pharmacy program is a program aimed at assisting the entire medical fraternity so as to ensure that every citizen is in a position to access medical assistance regardless of their financial status.