Measuring the Relative Size of the 340B Program: 2022 Update

The 340B Drug Pricing Program (“340B program”) continues to experience substantial growth, driven by increased participation in the program, hospital and provider consolidation, and expansion of contract pharmacy arrangements.

In 2022, total 340B program sales reached $54.6 billion when measured at the discounted 340B price. This figure represents enormous growth—more than double the level of 340B sales compared to just five years prior. However, the figure does not adequately represent the true size of the 340B program, as on average 340B prices were 57 percent lower than list prices in 2022, and the discounted 340B price for some medicines is just a penny. Expressed in terms of the undiscounted list price, measured as the wholesale acquisition cost (WAC), 340B sales reached $126.3 billion in 2022.

This study seeks to place the size of the 340B program into perspective through a comparison to other federal prescription drug programs and to the overall market for brand outpatient pharmaceuticals in the United States.

This study was funded by the Pharmaceutical Research and Manufacturers of America.