CHA News Article

DHCS Releases 340B Budget Trailer Bill Language

Last week, the Department of Finance released the Administration’s budget trailer bill proposals, including the Department of Health Care Services (DHCS) proposal to restrict the federal 340B Drug Pricing Program within Medi-Cal. Specifically, the proposal would require the department to seek federal authorization to prohibit a covered entity from dispensing a drug purchased through the 340B program to a Medi-Cal beneficiary or other individual participating in another program that is eligible for federal drug rebates. CHA opposes the state budget proposal, which would cost safety-net hospitals across the state hundreds of millions of dollars each year. CHA will meet with DHCS and members of the Legislature to share its concerns and mitigate the proposal’s impact on hospitals that participate in the 340B program.