340B Drug Discount Program
The Facts About an Essential Program for Hospitals Across Kentucky
- The 340B Drug Discount Program is a federal program but states have the authority to control drug distribution within their borders.
- Multiple states have passed laws to require drug companies to distribute prescription drugs at the federally agreed price to covered hospitals, primary care clinics, and their contract pharmacies because drug companies have refused to deliver these medications.
- When other states receive the discount rate but Kentucky doesn’t, Kentucky’s hospitals, primary care clinics, and their contract pharmacies pay higher prices for prescription drugs resulting in fewer services for patients.
- Kentucky needs legislation to ensure that Kentucky hospitals, primary care clinics, and their contract pharmacies are not treated differently than those in other states.
- NO STATE TAXPAYER DOLLARS ARE USED IN THIS PROGRAM. The only federal funds used in the program are for its oversight by the Health Resources and Services Administration. The program is funded by the drug companies.
- Drug companies DO NOT GIVE the prescription medications to the hospital for free. They sell the medications to the hospital for the same price as they sell them to their best customers.
- LAWMAKERS HAVE A CHOICE, stand with their local hospital, primary care clinic, their contract pharmacies, and their patients OR with multinational drug manufacturers.
UK Professor Releases Op-ed on 340B and SB14
On February 11, 2025, Charles Courtemanche, Professor of Economics and Director of the Institute for the Study of Free Enterprise at the University of Kentucky Gatton College of Business and Economics released an op-ed about 340B and SB 14 in the Kentucky General Assembly.
In the release, Courtemanche states, “In short, SB14 will help ensure that Kentucky gets the same benefits from the 340B program that other states passing legislation are getting. It will provide a substantial boost to the hospitals and other health care facilities most in need of support, without any cost to taxpayers.”
Review myths versus facts about the 340B Drug Pricing Program. (2025)
The 340B Program Is Essential to the Patients of Kentucky
The 340B program allows hospitals to purchase outpatient drugs at a discount and use the savings to maintain health care services. (2024)
340B Facts
The facts about an essential program for hospitals across Kentucky, including a list of Kentucky 340B hospitals. (2024)
KHA’s Senior Vice President of Policy & Government Relations Jim Musser discusses the 340B prescription drug program. (September 2024)
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