Reduced-price initiative threatened by manufacturers

PRESCRIPTION DRUGS

In the midst of a severe public health crisis, drug makers have launched an assault on a critically important drug discount program upon which low- and modest-income patients in our community depend. The attack on this program is unconscionable and threatens the well-being of tens of millions of patients across this country.

The program, known as 340B, was created several decades ago by Congress to provide hospitals and community health centers access to reduced priced medication.

Over the years, both Republicans and Democrats alike have supported the program because it stretches scarce federal resources as far as possible for the common good. No taxpayer dollars are involved, and nothing is wasted.

340B discounts make medications and services affordable for millions of patients including veterans, essential workers and countless others. A pandemic would seem the worst possible time to threaten a critical program that makes medicines affordable for those with modest incomes. Yet that is precisely what is taking place.

Drug manufacturers are utilizing a “death by a thousand cuts” approach to weaken the 340B program. Their tactics include imposing arbitrary reporting requirements and other actions that will severely restrict the availability of this program.

Compounding the problem are thirdparty vendors and pharmacy benefit managers intent on pocketing profits that could be used to lower the cost of vital medications, provide additional services and improve patient outcomes.

Drug manufacturers have claimed that they are taking these actions to ensure the integrity of this program. Yet hospitals and health centers have proven to be excellent stewards of tax dollars and 340B discounts. They are nonprofits, accountable by law and driven by mission, not money.

The broadside attacks on 340B started long before Covid-19 landed on the nation’s doorstep, but the pandemic offers drug makers a convenient cover to undermine this important program.

Everyone agrees high drug prices must be addressed, but critical access hospitals and community health centers are the solution, not the problem. Congress and the Health Resources and Services Administration must act now to ensure the survival of this important program. The stakes could not be higher.

Mike Peterson is the president and CEO of Androscoggin Valley Hospital in Berlin. Ken Gordon is CEO of Coos County Family Health Services, also in Berlin.