Veterans Home discusses prescription drug costs and proposed funding solutions

The House Finance Division of the New Hampshire Legislature convened on March 11, 2025, to discuss the state budget, focusing particularly on prescription drug expenses and funding sources for veterans' services.

The meeting began with a review of the budget summary, where members sought clarification on specific page numbers related to the budget document. A significant portion of the discussion centered on the management of prescription drug costs for veterans. Officials explained that they contract pharmacy services and receive reimbursements from the Veterans Affairs (VA) system based on individual disabilities and medications. Currently, the state receives approximately $30,000 monthly from the VA for pharmaceutical costs, but the majority of expenses are borne by the state.

Concerns were raised about the rising costs of prescription drugs, with one medication costing as much as $5,000 per month for a single veteran. The officials noted that they are advocating for legislative changes to allow the state veterans home to bill the VA for high-cost medications, which could alleviate some financial burdens.

The committee also discussed the potential impact of new administration policies on prescription drug pricing and the introduction of catastrophic disability applications, which could lead to full coverage of medications for qualifying veterans.

In terms of funding, the officials clarified that the budget consists of approximately 76% general funds, with additional revenue streams from donations and a dedicated fund for residents' benefits. They emphasized the oversight in managing these funds, ensuring transparency and accountability in how donations are utilized for veterans' services.

The meeting concluded with a discussion on the stability of funding from the VA amidst potential federal budget cuts. Officials expressed confidence that funding for state veterans homes would remain unaffected, citing reassurances from federal sources. They noted an increase in VA funding due to the PACT Act, which allows for higher disability ratings and subsequently higher per diem rates for the state.

Overall, the meeting highlighted ongoing challenges in managing prescription drug costs for veterans while ensuring adequate funding and support for their care. The committee plans to continue monitoring these issues and advocate for necessary legislative changes.