The 340B Drug Pricing Program allows certain health care providers (“covered entities”) to obtain discounted prices on “covered outpatient drugs” from drug manufacturers. So is 340B Distribution like any other wholesale agreement? Well not exactly:

Wholesalers are solely and largely responsible for the passing of 340B discount pricing to Covered Entities. Through the evolution of the 340B program, distributors, through the sheer force of volume, absorbed this roll. These discounts get passed to eligible Covered Entities through a process, called Chargebacks.

Looks confusing? That’s because it intentionally is. In a program designed to benefit a vulnerable community, fraud, waste, and abuse are prevalent.

This has caused increased labor and data demands upon the distribution channel, much of which remains unchanged from the near 30 years of the program’s existence. Distributors have to deal with erroneous pricing files, incomplete chargeback information, inaccurate reporting, and many other challenges.

Partnering with PharmalytIQ means a reduction of hours spent with pricing files, reduction of hassle working on chargebacks and recognizing properly reconciled 340B discount pricing. Through PharmaSee Direct, we can automate the distribution pipeline so that distributors concentrate on their core competency, distribution.

PharmaSee Direct, will allow each distributor to integrate their continuous stream of 340B orders without worrying about the hassle of properly accounting for the chargeback. Our system does the rest by offering auditable and transparent solutions from Pill to Patient.