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GAO: Drug Discount Program: Update on Agency Efforts to Improve 340B Program Oversight

July 1, 2017

Pursuit's Take

Under the 340B Drug Pricing Program, if drug manufacturers want Medicaid to cover their drugs, they are required to sell outpatient drugs at discounted prices to covered entities—such as eligible clinics and hospitals.

GAO’s 2011 Report found weaknesses in the Health Resources & Services Administration’s (HRSA) oversight of the 340B program.

This testimony describes HRSA’s progress in addressing GAO’s recommendations: it now audits entities to ensure they comply with program rules, and clarified its guidance on equitable distribution of drugs to 340B entities.

Read the full report Artboard 1

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