The Maine Hospital Association, federally qualified health centers and pharmacy organizations are urging state lawmakers to support a bipartisan bill that protects a discount drug program from what they say are “attacks” by drug companies.
The program, called 340b, allows eligible safety net providers to purchase drugs at deeply discounted prices, then reinvest those savings in care and services. But some providers in Maine said drug companies are now trying to restrict their use of the program by limiting partnerships with pharmacies.
Lori Dwyer, president and CEO of Penobscot Community Health Care, said those restrictions have already resulted in big revenue losses.
“From 2023 to 2024, PCHC’s 340b revenue declined nearly 40 percent, resulting in a nearly $5 million drop in 340b savings in one year for our organization,” she said.
Dwyer said that’s forced PCHC to reduce its workforce and shrink services.
The bill, which has bipartisan support, would prohibit drug companies from restricting a 340b health care provider from partnering with pharmacies.
Trevor Putnoky of the Healthcare Purchaser Alliance of Maine said the 340b program is especially important for small, rural health providers.
“This bill in particular is so broad, though, that it’s creating protections for entities who many not be using 340b dollars in the way the program was designed,” he said.
Putnoky said research has found that larger health providers such as hospitals don’t necessarily pass 340b savings on to consumers. And some only invest a fraction of 340b revenue into charity care. The bill is well meaning, he said, but more transparency is needed around how hospitals use 340b revenue before the program is changed.
In a written response, PhRMA, which represents drug companies, said hospitals exploit the 340b program by buying medicines at steep discounts and charging massive markups, imposing higher costs on patients, employers and taxpayers. PhRMA said that Maine lawmakers should not support the bill.
This article appears through a media partnership with Maine Public.
