Learn More About Our 340B Pharmacy Program
Ampla Health has partner with American Health Care to participate in the 340B drug pricing program. The 340B program requires drug manufacturers to sell outpatient drugs at a reduced price to eligible health organizations and their patients. Patients at Ampla Health are able to obtain discounted prices on their prescription drugs with any of our contracted pharmacies in the community.
All eligible patients, including Medicare and private insurance could enroll in the 340B program. Those who wish to enroll in the 340B program must be a patient at Ampla Health:
- Ampla Health must have a relationship with the individual, by maintaining the individual’s health records.
- The individual receives primary health care services from a provider of Ampla Health.
- The individual receives range of services from Ampla Health that are consistent with the services for which grant funding or federally qualified health center look-alike status has been provided.
Ampla Health cannot provide our patients a discounted 340B price and a Medicaid drug rebate for the same drug (duplicate discounts). Patients without prescription drug coverage will be provided with a 340B identification card. Simply present this card at one of our contracted pharmacies in order to receive discounts up to 60% off prescription medications.
*Health Resources and Services Administration (HRSA), which manages the program, estimates that covered entities saved $3.8 billion on outpatient drugs through the program in fiscal year 2013. On average, hospitals in the 340B program receive a minimum discount of 22.5% of the average sales price for drugs. Pharmaceutical prices available through the 340B program are significantly lower than both retail and wholesale prices.
*The intent of the 340B program is to stretch scarce Federal resources as far as possible, reaching more eligible patients and providing more comprehensive services”. Revenue generated from the program help fund free and low-cost primary care to our most vulnerable patients.
- What is the 340B Pharmacy Program?
- 340B program allows eligible health care organizations/entities to obtain discounted prices on outpatient drugs from manufacturers.
- 340B program applies to “covered outpatient drugs,” which are defined as prescription drugs and biologics other than vaccines (Social Security Act, Section 1927 (k)). This term excludes inpatient drugs and drugs that are bundled with other services (such as physician and hospital outpatient services) for payment purposes.
- HRSA estimates that covered entities saved $3.8 billion on outpatient drugs through the program in fiscal year 2013 (Health Resources and Services Administration 2015a)
- The program’s intent is to enable covered entities “. . . to stretch scarce Federal resources as far as possible, reaching more eligible patients and providing more comprehensive services” (U.S. House of Representatives 1992).
- Who qualifies and what is the process?
- Covered entities can purchase 340B drugs for all eligible patients, including patients with Medicare and private insurance
- Covered entities are allowed to provide 340B drugs only to individuals who are “patients” of the entity,
- the covered entity must have a relationship with the individual, which HRSA defines as maintaining the individual’s health care records
- the individual receives health care services from a health care professional who is employed by the entity or who provides care under contractual or other arrangements (e.g., referral for consultation), such that responsibility for the individual’s care remains with the entity
- the individual receives a service or range of services from the covered entity that is consistent with the service or services for which grant funding or federally qualified health center look-alike status has been provided (this criterion does not apply to hospitals) (Health Resources and Services Administration 1996).
- Covered entity may provide 340B drugs through an in-house pharmacy and one or more community pharmacies that are not part of the entity (contract pharmacies)
- Covered entities must be able to ensure that manufacturers do not provide a discounted 340B price and a Medicaid drug rebate for the same drug (duplicate discounts) (Health Resources and Services Administration 2014 (f))
- How does it benefit our patient?
- Health Resources and Services Administration (HRSA), which manages the program, estimates that covered entities saved $3.8 billion on outpatient drugs through the program in fiscal year 2013
- on average, hospitals in the 340B program receive a minimum discount of 22.5 percent of the average sales price for drugs
- HRSA’s rationale for permitting multiple contract pharmacies was to increase patient access to 340B drugs
- Pharmaceutical prices available through the 340B program are significantly lower than both retail and wholesale prices
- participants can save an estimated 20-50% off drug costs
- What impact would it have on our organization / other patients?
- Because the 340B statute does not restrict how covered entities can use this revenue, entities can use these funds to expand the number of patients served, increase the scope of services offered to low-income and other patients, invest in capital, cover administrative costs, or for any other purpose.1 HRSA does not have statutory authority to track how covered entities use this revenue.
- List of contracted pharmacies and addresses:
- Bidwell Pharmacy & Medical Supply
- 1200 Mangrove Ave, Chico CA 95926
- Chico Pharmacy
- 251 Cohasset Rd, Chico CA 95926
- Franklin Pharmacy
- 1619 Franklin Rd, Yuba City CA 95993
- Riverside Pharmacy
- 866 Plumas Street, Yuba City CA 95991
- Orlandcare Pharmacy and Medical Supply
- 61 E Walker Street, Orland CA 95963
- Dove’s Landing Pharmacy
- 2450 Oro Dam Blvd, Oroville CA 95966
- Live Oak Pharmacy
- 9970 Live Oak Blvd, Live Oak CA 95953
- Peach Tree Pharmacy
- 5730 Packard Ave, Marysville CA 95901
- Sutter Pharmacy
- 470 Plumas Blvd, Yuba City CA 95991
- Next Door Pharmacy
- 285 Cohasset Rd, Chico CA 95926
- Latimer’s Pharmacy
- 7885 Highway 99E, Los Molinos CA 96055
- Safeway Pharmacy #1125
- 1366 East Ave, Chico CA 95926
- Safeway Pharmacy #2287
- 1596 State Hwy 99, Gridley CA 95948
- Safeway Pharmacy #0302
- 6020 Clark Rd. Paradise CA 95965
- Bidwell Pharmacy & Medical Supply