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Manufacturers who participate in Medicaid are required under the 340B statute to enter into an agreement with the Secretary under which the manufacturer must agree to charge a price that will not exceed the amount determined under statute (ceiling price) when selling covered outpatient drugs to 340B covered entities. This agreement, known as the Pharmaceutical Pricing Agreement (PPA), must be signed by a manufacturer as a condition for participating in Medicaid. Signing the PPA does not prohibit a manufacturer from charging a price for a covered outpatient drug that is lower than the 340B ceiling price. A manufacturer may not condition the offer of 340B discounts upon a covered entity's assurance of compliance with section
340B Program requirements.
The 340B OPAIS allows manufacturers to generate the PPA and Addendum as PDF files and electronically sign and submit them to OPA for approval. The Authorizing Official (AO) and Primary Contact (PC) for the manufacturer may view the PDF documents and through the My Labeler Codes tab of My Dashboard.