340B is a Vital Program for Community Health Centers

• For over 30 years, the 340B Program has provided critical resources enabling Community Health Centers to deliver affordable and accessible health care services to the most underserved and vulnerable communities.

• With over 90% of health center patients at or below 200% of the Federal Poverty Level, there is no question that health centers exemplify the type of safety net program the 340B Program was intended to support. Health centers must serve all patients regardless of their ability to pay.

• Health centers reinvest the savings into activities that improve patients’ lives and health, as required by law and regulation. This contribution to their operating margin enables each health center to meet the unique needs of communities, such as dental care, behavioral health, specialty care, interpretation services, food banks, housing support, and co-pay assistance programs.

The 340B Program Needs to be Reformed

• Unfortunately, over the last three years, health centers have lost mission-critical resources from the 340B program, while the Health Center Program hit a historic record of 31.5 million patients.

• The 340B statute’s ambiguity has created instability in the program, causing health center patients to be at risk of losing access to affordable and comprehensive healthcare services. Moreover, the loose guardrails in the law have allowed well-resourced organizations and for-profit companies to exploit loopholes. Multiple court cases have provided little relief to true safety-net providers.

• One year ago, NACHC launched the Alliance to Save America’s 340B Program (ASAP 340B), a new coalition in partnership with health centers, patient, provider, and consumer advocates, and leaders from the biopharmaceutical industry working to ensure the 340B program supports true safety-net providers and the communities they serve.