340B Drug Discount Program

Governor Gavin Newsom was sworn-in as California’s 40th Governor in January 2019. The Governor released his $209 billion budget for FY2019-20 which shows his commitment to healthcare and underserved populations. Highlights from his budget include: expanding full scope Medi-Cal coverage to young adults up to age 25 regardless of immigration status, and investing in mental health by appointing a Mental Health Czar, to help shape California’s vision and strategic plan around behavioral health. Although Governor Newsom’s budget commitments take a step in the right direction toward expanding access to health care, Northeast Valley Health Corporation (NEVHC) and the CaliforniaHealth+ Advocates have concerns with how his proposed Executive Order N-01-19 would affect the 340B Drug Discount Program created by Congress to help eligible providers like NEVHC purchase pharmaceutical drugs at discounted rates.

Governor Newsom’s executive order would create a single-purchaser system for drugs providing an opportunity for Californians across different healthcare spectrums to have a role in negotiating prescription drug prices. Unfortunately, provisions in the Governor’s executive order would direct the California Department of Health Care Services (DHCS) to transition pharmacy services for Medi-Cal managed care to a fee for service (FFS) which would prevent NEVHC from re-investing 340B savings back into our health centers.  NEVHC currently re-invests savings from 340B by expanding programs that enhance access to care for our patients.

Your advocacy efforts are crucial to protect 340B Drug Discount Programs. Join NEVHC’s efforts by calling your state legislators and remind them about the savings 340B provides to NEVHC. Click here for talking points and click here to locate your state legislators.  

For questions or more information please feel free to contact NEVHC’s Government and Community Relations Manager, Brian Gavidia at: briangavidia@nevhc.org or (818) 780-9540.

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