WORLD AIDS DAY 2020
Warnings on ‘21 Changes to Drug Discount Program
Nonprofi ts say altering 340B could hinder efforts to end the HIV/ AIDS epidemic in NYS
BY MATT TRACY
A federal program requiring
drug manufacturers
to distribute
medication to certain
providers at discounted prices
could undergo sweeping changes
here in New York, prompting local
nonprofi ts to raise concerns about
the looming impact those changes
could have on vulnerable populations
— including individuals
living with HIV/ AIDS as well as
homeless folks.
Under the 340B program —
named after Section 340B of the
Public Health Service Act — pharmaceutical
companies participating
in Medicaid sell discounted
drugs to managed care providers
with underserved clients, which
allows the providers to then utilize
remaining funds to facilitate other
services. The organizations that
benefi t from the program include
community health non-profi ts,
homeless shelter providers, and
safety net hospitals, which serve
patients regardless of their ability
to pay.
However, those crucial organizations
are fearing the worst after the
state passed a budget in April calling
for the program to be carved
out on April 1 of next year in such
a way that would divert the savings
from providers serving vulnerable
populations to the state as part of
a fee-for-service model.
“The state is saying, ‘No, we’re
going to take it,’” Matt Bernardo,
the president of Housing Works,
told Gay City News in an interview.
Housing Works serves many
New York City residents living
with HIV/ AIDS and experiencing
homelessness, and the organiza-
HOUSING WORKS
Housing Works president Matt Bernardo said changes to the 340B program will lead to explosions in
healthcare costs for groups like his and their clients. ➤ 340B DRUG DISCOUNTS, continued on p.13
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November 26 - December 2,12 2020 | GayCityNews.com
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