The 340B Drug Pricing Program is a federal initiative that allows safety net providers to purchase discounted drugs from pharmaceutical companies. These savings come at no cost to the taxpayer and fund direct treatment and community services for patients.  

Over two thirds of Minnesota’s hospitals qualify for the 340B Drug Pricing Program, which helps to ensure they can continue to provide primary and specialty care services for rural and underserved populations. The savings from the 340B program helps offset Medicaid underpayments and exorbitant prices from pharmaceutical companies.  

Examples of patient services funded by savings from the 340B Drug Pricing Program include: 

• 70% of Children’s Minnesota’s 340B savings come from providing care to patients in hematology, oncology, and endocrine programs. 

• CentraCare’s outpatient infusion center.  Patients receive infusion therapy for chemotherapy, diseases such as Crohn’s Disease, IVIG therapy, and more. 

• Reduction in drug prices for patients. In 2022, Essentia Health used 340B savings to reduce pharmaceutical costs in their community by $15,675,000. 

• Free medications for patients who can’t afford them, cancer treatments, subsidizing emergency medical services, community health fairs, and other essential services. 

Hospitals are struggling financially due to underpayments from government-funded insurance, discharge delays, the ongoing workforce crisis, and increased cost of labor and supplies. Keep big pharma helping to fund these essential medical services and reduce drug prices for Minnesota patients.