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Health centers, rare‑disease advocates urge state action on 340B contract‑pharmacy restrictions

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Summary

Federally qualified health centers, community clinics and rare‑disease advocates told the House Health Policy Committee that manufacturer contract‑pharmacy restrictions and changing manufacturer rules are reducing 340B savings and threatening nonreimbursable services for vulnerable patients.

Witnesses before the House Health Policy Committee described how restrictions on the federal 340B drug‑pricing program are limiting health centers’ ability to use savings to support patient care.

Frank Waters of the Michigan Primary Care Association and leaders from several federally qualified health centers told the committee that contract‑pharmacy limits and frequent manufacturer rule changes have reduced 340B savings and increased administrative burden, undermining services for low‑income and underserved patients.

Waters said Michigan has 41 federally qualified health centers with about 400 locations serving close to 700,000 residents; those centers are required to serve patients regardless of insurance. Mike Weeses, CEO of…

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