The Governor has proposed to cut the 340B program in his 2018-19 budget. This cut will directly hurt health centers and other safety net providers.
The 340B Drug Discount Program is a US federal government program created in 1992 that requires drug manufacturers to provide outpatient drugs to eligible health care organizations and covered entities at significantly reduced prices. Health Centers reinvest these "savings" in underserved communities to expand services, add staff, and increase access to care for families.
The proposal in the Governor's May Revise would eliminate health centers' ability to utilize 340B in the Medi-Cal program.
The state estimates this change would generate up to $16 million for the state's general fund by 2021, however, it will result in an immediate loss of nearly $100 million for health centers and safety net hospitals around the state, hurting your community and jobs.
Do the Math...communities will lose more than they gain.