Governor's Budget to Eliminate 340b Contract Pharmacy Program
Earlier this week the California Department of Health Care Services (DHCS) issued its list budget trailer bills, which are the implementing measures of the California State Budget. One of those trailer bills, TBL 645, proposes to "seek federal approval to prohibit or otherwise limit the use of contract pharmacies by a covered entity participating in the Medi-Cal program..." Elimination of 340b pharmacy contracting would apply to both the Medi-Cal fee-for-service and Medi-Cal managed care delivery systems.
A number of provider groups including CPhA, California Hospital Association, Children's Hospitals, and others have expressed significant concerns over these proposed cuts and the reduced access to affordable medications for thousands of Californians. CPhA believes that eliminating the 340b contracting program is a policy change that should be addressed by the Legislature through the legislative process and not a budget committee consideration. CPhA will be meeting with allied partners to determine what advocacy strategies are available to attempt at reversing the DHCS proposal.
Please watch for further CPhA communications as this issue develops further.
