An overview of the 340B programme
The 340B program is a drug pricing scheme that makes it possible for some healthcare organizations to get access to discounted drug prices. In the 340B program, eligible organizations are usually termed as “covered entities.” The 340B program is a scheme that comes with a neutral budget from the US federal government. The program has been designed by the governments to cater to certain patients who are unable to afford medical services. The covered entities are used to provide affordable healthcare to patients and their local communities. This innovative program has been very successful in helping covered entities to be able to deliver affordable healthcare to underserved communities.
The drug pricing program is a federal scheme that needs manufacturers of drugs of are participants of the Medicaid drug rebate program to make outpatient drugs available for covered entities who are enrolled in the program.
Qualifying for the 340B scheme: Who is eligible?
Various organizations are eligible to take part in the 340B program. They include Sole community hospitals (SCH), Rural referral centres (RRC), Children’s Hospitals, Independent cancer centres, Critical Access Hospitals (CAH). In addition, there are other various organizations like the Federally Qualified Health Centers (FQHC), and Community Health Centers (CHC) are all eligible for the 340B program.
What drugs are part of the program?
The drugs that are part of this program includes a prescription drug that is approved by the FDA, an OTC (over the counter) drug and a medical-biological product that is dispensed by prescription only or insulin that have been approved by the FDA.
What does the 340B achieve?
The 340B program is generally used to achieve a lower price for purchased goods. This means that the price of medications is typically reduced for the areas of a hospital covering outpatients. This means that the beneficiaries usually get reductions in drug prices that lies between 25% and 50%. Before the covered entities can benefit from the program, they are expected to follow some strict rules and regulations.
Implementing a 340B program: The role of administrators
Some administrators help covered entities implement a successful and effective 340B program according to the rules and regulations. The administrators have the tools and solutions to ensure that the covered entity accomplishes the primary objective of the 340B program. A 340B administrator will:
• Develop and implement an effective 340B program which will be tailored to fit the objectives and the requirements of the eligible organizations and all patients they have.
• A 340B administrators usually create and foster positive relationships with pharmacies. This includes program registration and negotiations.
• The administrators can develop real-time systems that help manage the program to ensure that is always in compliance with all laid down rules and regulations of the 340 B programme. This includes drug diversion and patient eligibility.
• The administrator also ensures that they fully implement a strategy that is used to qualify prescriptions while maximizing the general profitability. • One important function of an administrator in the programme is to perform accounting functions and reconcile payments with contracted pharm