Cutting Care: How Changes to the 340B Drug Pricing Program Impact Patients Served by Federally Qualified Health...

The high cost of medication is a common challenge for many Americans. This is particularly true for patients served by Federally Qualified Health Centers (FQHCs) that often have low income and are medically vulnerable. In this article I discuss the history and purpose behind the creation of the 340B drug pricing program, legislation enacted to limit the cost of drugs used by patients covered by Medicaid that requires drug manufacturers to enter into discount agreements with the Health Resources and Services Administration (HRSA), and how for years this program has been used to finance health care provision for communities that use FQHCs as their source of primary care. Additionally, I will discuss the history behind the creation of FQHCs and how that mission is affected by litigation and proposed reforms that would limit the ability of FQHCs to leverage savings and revenue from the program to fund health services for their patient populations. I argue that reinforcement of existing discounting practices, along with limited reforms of the 340B program are necessary to avoid disruption of health care provision for patients of FQHCs and to ensure that the 340B program continues to perform as intended.