HRSA Selects Prime Vendor for Drug Pricing Program

12/14/2004

Health Purchasing Partners International (HPPI) is the new Prime Vendor for the 340B Drug Pricing Program, administered by HHS' Health Resources and Services Administration.

Section 340B of the Public Health Service Act requires drug manufacturers participating in Medicaid to provide formula-based discounts for entities receiving funds under 16 specified HHS programs and certain safety-net hospitals and clinics.

"Since September 10, when HPPI became prime vendor, over 1,400 line items have been negotiated at prices that range from 2 to 35 percent below the 340B ceiling price," said HRSA Administrator Elizabeth M. Duke. "By combining buying power and efficient distribution services, we expect the new Prime Vendor agreement to result in continued savings for participating customers."

Health centers, HIV/AIDS treatment and drug assistance programs, and safety-net hospitals and clinics use the money they save by participating in the 340B program to expand access to prescription drugs and other services for uninsured and underinsured people.

For more than a year prior to become Prime Vendor, HPPI was a subcontractor to the previous Prime Vendor, AmerisourceBergen. In this capacity, HPPI helped develop efficient distribution networks, secured sub-340B discounts on multi-source and branded pharmaceuticals, and increased the number of participating wholesale distributors and covered entities.

The new five-year agreement with HPPI will continue these services, enabling a 340B-covered entity to participate in the program using its existing drug distributor, and maintaining previously negotiated sub-340B discounts on outpatient drugs.

Providers with questions about the 340B Drug Pricing Program or eligibility status should contact the HRSA's Pharmacy Services Support Center at 800-237-2742, Ext. 7518. Eligible safety-net providers interested in joining the Prime Vendor Program may visit http://www.340bpvp.com or call 888-340-2787. The 340B Drug Pricing Program is administered by the Office of Pharmacy Affairs (OPA) in HRSA's Healthcare Systems Bureau.