I want to express my strong support for California’s community health centers and their ability to continue to fully participate and utilize the federal 340B Drug Pricing Discount Program to provide access to vital healthcare and pharmacy services to underserved communities across the state.

Next January, the California Department of Health Care Services (DHCS) plans to transition all pharmacy services from Medi-Cal managed care to a fee-for-service benefit, this transition, known as Medi-Cal Rx, will also impact the 340B Program. The action will take away funds realized by community health centers from the 340B Program, jeopardizing access to care and essential services they provide to millions of individuals and families throughout California.

Congress intended savings from the 340B Drug Pricing Discount Program to stretch scarce resources that enable federally qualified health centers (FQHCs) to help meet patients’ needs and ensure communities across the country access to care.

Community health centers offer a wide range of services including, primary care, dental, behavioral health, screenings, treatment for HIV/AIDS, pharmacy, transportation services, and much more.

Furthermore, community health centers play a crucial role in addressing health equity, as well as, continue to serve on the front lines in the fight against the pandemic, providing COVID19 education, counseling, testing, and vaccinations.

We urge your support in encouraging DHCS to delay the implementation of Medi-Cal Rx and explore solutions that would allow them to move forward with the pharmacy transition while still preserving the 340B Program for community health centers.