What is a Covered Outpatient Drug?

A Covered Outpatient Drug is defined as a drug that is eligible for discounts under the 340B Program. This designation is significant because the 340B Program allows eligible health care providers to purchase outpatient drugs at reduced prices. This enables them to extend their resources and provide more comprehensive care to underserved populations.

In the context of the 340B Program, the emphasis is on outpatient drugs, which means that these medications are typically prescribed and used in outpatient settings rather than inpatient care. The focus on affordability and accessibility is a key aspect of the program's goal to enhance healthcare delivery for vulnerable patients.

Understanding the scope of covered outpatient drugs is essential for correctly navigating the 340B environment, as not all medications qualify, and ensuring compliance requires a thorough knowledge of the guidelines governing eligibility and usage within the program.