The program, which provides discounts on prescription medications for clinics treating low-income patients, has been affected by the Inflation Reduction Act and other federal pricing measures. In response, pharmaceutical companies lowered the prices of certain drugs in 2024 to avoid penalties for price increases.
However, the price reductions have inadvertently raised costs for clinics, which no longer receive the same discounts. For example, drugs such as Victoza, a diabetes medication, once available to clinics at nearly no cost, now come with higher prices.
The shift in pricing has caused a ripple effect, limiting resources for other essential services at community health centers. Clinics such as Erie Family Health Centers in Chicago and Valley View Health Center in Chehalis, Wash., are seeing financial strain, with some unable to continue non-covered programs, according to the Times.
When contacted by the newspaper, a spokesman for the Health Resources and Services Administration, which oversees the 340B program, did not address how community health clinics may be affected by the lowered drug prices.
