; (2) Section 340B requires drug manufacturers to offer discounted prices on covered outpatient drugs to covered entities participating in the program, as a condition of participating in the Medicaid or Medicare Part B programs, and drug manufacturers must offer 340B pricing to covered entities and sell 340B and deliver 340B drugs to covered entities when requested irrespective of the manner or location through which a 340B drug is dispensed. (3) Savings from section 340B enables hospitals, clinics, and health centers’ to provide comprehensive services to the communities they serve, and covered entities are in the best position to assess the use of their savings for community needs. (4) Since the early years of the 340B program, covered entities have contracted with pharmacies to dispense covered outpatient drugs purchased by a covered entity at 340B pricing to patients of the covered entity, consistent with how Congress intended for covered entities to use the program. (5) Covered entities use savings generated through 340B contract pharmacy relationships to stretch scarce resources and support patient care, consistent with the purpose of the program. (6) Section 340B requires drug manufacturers to offer 340B pricing for drugs purchased by covered entities regardless of the manner or location in which a drug is dispensed, including drugs dispensed through contract pharmacies. (7) Section 340B does not allow drug manufacturers to place conditions on the ability of a covered entity to purchase or use a covered outpatient drug at 340B pricing regardless of the manner or location in which a drug is dispensed, including by restricting a covered entity’s ability to dispense 340B drugs to patients through a contractual relationship with a contracted pharmacy or refusing to ship covered outpatient drugs to a pharmacy or location identified by a covered entity. (8) Section 340B’s inflationary penalty provisions, which have saved $7 billion in Medicare Part D spending between 2013 and 2017, have a proven record of