Health centers urge Massachusetts to protect 340B program; critics call for transparency reforms

BOSTON — Leaders of Massachusetts community health centers urged the Joint Committee on Financial Services on March 1 to pass House Bill 1107 and Senate Bill 819 to stop manufacturers and pharmacy benefit managers (PBMs) from undermining the federal 340B drug discount program that health centers use to fund services.

"The 340B program is a vital federal policy that allows eligible safety-net providers to stretch scarce resources and invest these savings directly into care," said Christina Severn, president and CEO of Community Care Cooperative. She testified that 340B savings are not patient discounts but a sustainability mechanism that supports primary care, behavioral health and other services at federally qualified health centers (FQHCs).

Supporters said manufacturers have begun restricting shipments to contract pharmacies and PBMs have imposed discriminatory contracting terms that reduce the net savings health centers rely on. "This legislation represents a no-cost solution that will restore millions of dollars in lost…