Protect the 340B Program: Keep Healthcare Close to Home in Kansas
What Is the 340B Drug Pricing Program?
The 340B Drug Pricing Program was created by Congress in 1992 under the Public Health Service Act.
The program requires pharmaceutical manufacturers that participate in Medicaid to provide discounted outpatient medications to eligible hospitals and health centers that serve a high number of uninsured and underinsured patients.
In exchange for having their drugs covered under Medicaid, manufacturers agree to offer reduced pricing to these providers.
✔ 340B is NOT funded by taxpayers
✔ It does NOT create a new tax
✔ It does NOT increase Kansas state spending
It is a pricing structure between drug manufacturers and qualifying healthcare providers.
The program is administered federally by the Health Resources and Services Administration (HRSA).
340B in Kansas
According to the Kansas Hospital Association, more than 90 Kansas hospitals — most of them rural — participate in the 340B Program.
Kansas faces significant rural healthcare challenges:
Kansas ranks among the states with the highest number of rural hospitals at risk of closure.
340B savings are one of the tools rural hospitals use to remain financially stable while continuing to serve their communities.
The Kansas Hospital Association hosts a dedicated resource page explaining how 340B supports Kansas communities:
How 340B Supports Rural Communities
Savings generated through 340B allow hospitals to:
Maintain outpatient infusion and chemotherapy services through our Medication & Infusion Program, allowing patients to receive treatment close to home rather than traveling outside the county.
Expand behavioral health programs
Support maternal and women’s health services
Fund diabetes education and chronic disease management programs
Offset uncompensated care costs
Provide community wellness and prevention programs
For many rural hospitals operating on thin margins, these savings help preserve access to care close to home.
Without 340B protections, hospitals may be forced to reduce or discontinue certain services, requiring patients to travel farther for treatment.
Why the Program Is Under Discussion
In recent years, pharmaceutical manufacturers have restricted how hospitals use contract pharmacies to dispense 340B medications.
Many rural hospitals do not operate in-house outpatient pharmacies and must partner with local pharmacies to provide medication access. These manufacturer restrictions have reduced savings for some Kansas hospitals.
Kansas lawmakers previously enacted protections to preserve access to the 340B program for rural hospitals and pharmacies. Ongoing legislative discussions may affect how the program operates in the future.
What This Means for Our Community
For rural communities, healthcare access and economic stability are closely connected.
Hospitals are:
Major local employers
Economic anchors in their counties
Essential providers of emergency, maternity, behavioral health, and chronic care services
Programs like 340B help sustain that infrastructure.
Protecting the 340B Program helps protect:
Local healthcare access
Rural jobs
Vulnerable patients
Community health stability
Learn More
We encourage community members to review trusted, state-level resources:
Â
Kansas Hospital Association 340B Kansas Resource:
- Kansas Hospital Association Overview of 340B:
These resources provide additional data, videos, and information about how the 340B Program supports Kansas hospitals and communities.
How You Can Help
If you believe rural healthcare access should be protected, you may contact your Kansas state legislators and respectfully ask them to support policies that preserve the 340B Drug Pricing Program for Kansas hospitals.
Find your legislator here:
Encourage them to protect the 340B Drug Pricing Program because it helps keep healthcare services available in rural communities and does not use taxpayer dollars.
FAQ's
No. The 340B Program is not a tax and does not use Kansas taxpayer dollars. It is a federal drug pricing requirement tied to Medicaid participation.
No. The program regulates pricing between pharmaceutical manufacturers and eligible hospitals.
According to the Kansas Hospital Association, more than 90 Kansas hospitals participate, most of them rural.
Â
The savings help hospitals maintain services such as infusion therapy, behavioral health, and chronic disease management in communities with thin operating margins.
Sources & References
The information presented on this page is based on publicly available federal and state resources, including:
Health Resources and Services Administration (HRSA) – 340B Drug Pricing Program Overview
U.S. Department of Health and Human Services
https://www.hrsa.gov/opaSection 340B of the Public Health Service Act (42 U.S.C. §256b) – Federal statute establishing the 340B Drug Pricing Program (1992)
Kansas Hospital Association (KHA) – 340B Kansas Resource Center
https://www.kha-net.org/CriticalIssues/AccessToCare/340BKansas/Kansas Hospital Association – 340B Program Resources
https://www.kha-net.org/CriticalIssues/AccessToCare/340b-resources/Center for Healthcare Quality and Payment Reform (CHQPR) – National Rural Hospital Financial Risk Reports
https://ruralhospitals.chqpr.org/
For official legislative information and to contact your Kansas state legislators, visit:
https://www.kslegislature.org/li/
