Medicare Part D Rebates for Prescriptions Filled at 340B Contract Pharmacies

Congress created the 340B Drug Pricing Program to assist providers serving vulnerable patient populations by allowing them to purchase outpatient drugs at discounted prices. For drugs dispensed to Medicare Part D beneficiaries for payment under the Part D program, manufacturers may pay rebates based on rebate agreement terms negotiated between the manufacturers and the Part D prescription drug plan sponsors or their pharmacy benefit managers. Rebate agreement terms may prevent manufacturers from paying rebates for Part D prescriptions filled at 340B contract pharmacies.