A look at how the State's 340B carve-out will impact Neighborhood Health Center.
Neighborhood Health Center is at risk of losing millions of dollars that support patient services as a result of a pending New York State policy which will undercut access to 340B pharmacy benefits starting in April 2023. This carve out has the potential to negatively impact all Neighborhood patients, but most significantly those with low incomes or living in poverty.
Here are some key questions and answers about the issue:
What is 340B?
Section 340B of the federal Public Health Service Act requires pharmaceutical manufacturers participating in Medicaid to sell outpatient drugs at discounted prices to healthcare organizations that care for many uninsured and low-income patients. These organizations include Federally Qualified Health Centers such as Neighborhood.
The 340B program allows healthcare organizations to reduce the price that patients pay for prescription medications. The organizations are then reimbursed for these medications at a higher rate. The money generated for healthcare organizations through the 340B program helps cover important costs such as providing free care for uninsured patients, free vaccines, community health programs and other services. Under New York State’s 340B carve-out, the State will keep the money that 340B is currently generating for healthcare organizations for these services.
How will the 340B carve-out affect Neighborhood Health Center patients?
Approximately 50% of patients using Neighborhood’s pharmacies are insured by Medicaid. This means Neighborhood stands to lose millions of dollars in 340B savings. This will affect all Neighborhood patients, however, it will most significantly impact low-income patients who rely on Neighborhood’s services since they often have fewer options for accessing services.
New York State has stated that health centers, such as Neighborhood, will be “made whole” and not left with major budget gaps due to the 340B carve-out, but the State has so far not shared its plan for how it intends to accomplish this.
How can you help?
· Learn more about what’s at stake at https://www.savenysafetynet.com and www.leave340b.org.
· Spread the word, and consider becoming an advocate for adequate funding for the important work of health centers such as Neighborhood.
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