Advocates Warn of Changes to Drug Discount Program
Housing Works, Harlem United say looming overhaul could jeopardize clients’ health
BY MATT TRACY
For yet another year,
health providers serving
New Yorkers are warning
of chaos and dire consequences
if the state proceeds with
a plan to overhaul a federal drug
discount program for underserved
clients in local communities.
The federal initiative, formally
known as the 340B program, requires
drugmakers participating
in Medicaid to sell medication at
reduced rates to managed care
providers. In turn, those providers
are directed to spend the savings
on staffi ng and critical services for
patients, such as transportation to
and from appointments. Individuals
living with HIV/AIDS, LGBTQ
folks, and people of other marginalized
backgrounds make up a
signifi cant share of individuals affected
by 340B.
Housing Works is one of the groups warning of looming changes to a drug discount program.
The program — which impacts
community health non-profi ts,
homeless shelter providers, and
safety net hospitals — also facilitates
the coordination of complex
care for patients in need of tailored
services.
All of that, advocates say, would
be in jeopardy if the state moves
ahead with plans to implement
a carve-out of the 340B program
MATT TRACY
on April 1 of next year. Rather
than funneling funds back to the
community providers, the money
would instead be given to the state
as part of a fee-for-service model.
“If those dollars go away, then
we are at risk for losing not just
programs and services provided
by safety net providers, but we are
also at risk of losing safety net providers
entirely because some of the
HEALTH
HIV service providers will end up
having to close their doors,” said
Jacqui Kilmer, the CEO of Harlem
United, which provides healthcare,
housing, prevention, and supportive
services to more than 10,000
clients every year.
Housing Works, which is a nonprofi
t serving clients living with
HIV/AIDS and experiencing homelessness,
also voiced concern.
“A lot of our clients are HIV-positive
or on PrEP, so they can’t miss
doses,” Housing Works president
Matt Bernardo said.
Providers will turn to the governor
to make the case against the
scheduled changes — and they are
feeling pressed for time because although
April 2023 is more than a
year out, budgets are hashed out
long before that date.
The governor’s offi ce did not respond
to requests for comment for
this story.
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