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UCHealth officials explain 340B drug program and warn proposed federal changes could threaten about $1 billion in savings
Summary
Pharmacy leaders described the 340B outpatient drug discount program, how UCHealth uses it to expand pharmacy access and community services, and warned that federal policy changes or executive actions could materially reduce the program's savings; UCHealth reported robust internal controls and HRSA audits.
University of California pharmacy leaders gave the Health Services Committee a detailed briefing on the federal 340B drug discount program, explaining how the program generates savings UCHealth directs to community services and pharmacy access.
Amar Shamra, identified as System Manager for UCHealth’s 340B program, explained that 340B is a federal drug‑discount program created by Congress in 1992 under the Public Health Service Act and overseen by the Health Resources and Services Administration (HRSA). "It requires manufacturers to provide a discount on outpatient drugs," Shamra said, and UCHealth uses the savings to fund prescription assistance, subsidize specialty care and expand access at in‑house and contract pharmacies.
Shamra told the committee that UCHealth operates 18 covered entities eligible for…
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