Reference answer · 340b-program · reviewed quarterly
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Review cadence: quarterlyUnderlying federal data: refreshed weekly to annual per source
Q&A library · 340b-program

How does HRSA calculate 340B ceiling prices and apply penny pricing?

HRSA’s 340B ceiling price combines the Average Manufacturer Price (AMP) with the Medicaid Unit Rebate Amount (URA) to determine the maximum per-unit price manufacturers can charge covered entities. When the formula results in zero or a negative value, HRSA’s penny pricing rule requires setting the price at $0.01 per unit to ensure full statutory discounts and compliance.

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