Which type of entity is classified as a 340B drug pricing provider?

A covered entity is classified as a 340B drug pricing provider because it meets specific criteria established under the 340B Program, which is designed to allow healthcare providers to purchase outpatient drugs at reduced prices. Covered entities typically include certain types of clinics, community health centers, and hospitals that serve a large number of low-income or uninsured patients. These entities are eligible to participate in the 340B Program due to their commitment to providing care to vulnerable populations, allowing them to stretch scarce resources and improve access to essential medications.

This classification emphasizes the program's goal of supporting healthcare providers who serve patients in need by enabling them to offer medications at a lower cost, ultimately benefiting the patients as well. Other options, such as Medicaid service providers, pharmacy benefit managers, and private insurance companies, do not have the same eligibility or role in the 340B Program framework, as they do not directly provide the benefits associated with the 340B pricing structure focused on enhancing access to medications for those in underserved areas.