Committee hears lawmakers and providers push for state protections and transparency for 340B drug discounts

Colleen Meiman, a policy consultant with the Bi‑State Primary Care Association, told the Senate Health & Welfare Committee on April 4 that the federal 340B program is “the backbone of the primary care safety net” in Vermont and elsewhere. She said 340B providers — including federally qualified health centers (FQHCs) and critical access hospitals — rely on discounted drug acquisition to stretch scarce resources and support services beyond pharmaceuticals.

The first witness framed the mechanics for lawmakers. “340B discounts are funded entirely by drug makers, not by taxpayers,” Meiman said, and the program allows health centers to buy drugs at a lower acquisition cost and, in many cases, be reimbursed at higher insurer rates so the difference funds services such as dental care, substance‑use treatment and mobile units. Meiman noted mandatory discounts are 13 percent for generic drugs and 23 percent for brand drugs, and an additional penalty discount can apply when manufacturers raise prices faster than inflation.

The committee heard that actions by manufacturers…