The federal 340B program requires pharmaceutical manufacturers to provide discounts on outpatient medications to Federally Qualified Health Centers and other safety net providers to ensure pharmaceuticals are affordable for their patients and to allow them to expand access to care — at no cost to the federal or state government. In recent years, this critical program has been shrinking due to restrictions by pharmaceutical manufacturers and pharmacy benefit managers siphoning millions of dollars out of the program and into their pockets.
Restoring 340B savings to health centers is vital to the long-term sustainability of health center operations as every dollar is reinvested back into patient services. At the federal level, the Mass League is supportive of comprehensive, bipartisan reform to ensure the sustainability of the program, ensure access to low-cost medications and services for patients, increase transparency, and allow safety net providers to stretch scarce federal resources while providing comprehensive, affordable care to all.
In addition to working with Congress, the Mass League has introduced legislative language to mitigate attacks on the program at the state level. This has included legislation to prohibit discriminatory contracting by pharmacy benefit managers. In addition, the Mass League has introduced legislative language that prohibits manufacturers from restricting the use of contract pharmacies by community health centers under the 340B program. Health centers have lost tens of millions of dollars over the past several years due to these practices. This is revenue they had previously relied on for decades to provide affordable medication and services to their patients. Mitigation at the state level to maintain the status quo is a must-do for health centers while federal reform efforts are underway.
Click here to learn more about this pivotal 340B legislation.
For more information about 340B, contact Morgan McCallister at mmccallister@massleague.org.
