Drugmakers threaten statute for discounted medicine
Regional One Health is a safety-net provider. That means we treat all sick people regardless of their ability to pay.
Seventy-seven percent of our patients are on Medicaid, Medicare or lack health insurance altogether. A little-known federal statute called the 340B drug discount program helps us care for the neediest in our community.
Signed into law by George H.W. Bush in 1992, the program requires drug companies to sell discounted medications to health care providers that serve high numbers of low-income Medicare and Medicaid patients or are located in remote rural areas. These safety-net hospitals pass the discounts on to needy patients and also use savings from the program to fund diabetes, primary-care clinics and other needed services to improve access to care and health outcomes for our community’s most vulnerable patients.
Unfortunately, this critically important program is at risk. In recent years, pharmaceutical manufacturers have intensified their efforts to scale back the 340B program in Washington by limiting hospital and patient eligibility — pursuing actions that would adversely impact access to care for the most vulnerable citizens.
They have taken this position even though 340B drugs amount to just 2 percent of the $457 billion annual U.S. pharmaceutical market.
To serve all who walk in the door, we provide $132 million annually in uncompensated care. We save approximately $7 million per year thanks to the 340B program. The program helps us fund the provision of free medicines, health services and medication management counseling to our underserved patients. 340B savings also help us offset the cost of our Level 1 trauma center, burn center and four primary care clinics.
Treating patients with limited or no financial means is enormously expensive. Hospitals in the 340B program serve nearly twice as many needy patients as other providers. They also supply nearly 60 percent of all uncompensated care.
The rate of uninsured Americans has fallen to 27 million, according to the Centers for Disease Control and Prevention. That’s good news. The bad news is that 40 percent of insured patients are now on highdeductible policies, and this is a number that’s rising.
Many cannot afford their co-pays, and when they become seriously ill, they find themselves effectively underinsured.
Safety-net hospitals in this country shoulder $25 billion per year in uncompensated care. The 340B program is essential in helping these hospitals offset this cost, allowing providers to provide needed services to customers who cannot pay — or fully pay — for care.
It’s important to understand that 340B is not taxpayer funded — but instead requires drug companies to give a discount to health care providers that serve our most vulnerable citizens. Because of 340B, our patients benefit from having access to needed drugs and health care.
Right now, the drug industry is working hard behind the scenes in Washington to gut the program, both at the federal agency level and on Capitol Hill. Our community deserves better. We encourage you to contact your congressional representatives and ask them to help protect and support the 340B drug discount program.