Mar 28, 2023
Trillium stands to lose $5 million in critical funding due to changes to the 340B Prescription Drug Discount Program; could be forced to cut life-saving programs
March 28, 2023 (ROCHESTER, NY) – Employees and supporters of Trillium Health rallied in downtown Rochester in a last-ditch effort to block changes slated for New York State’s 340B Prescription Drug Discount Program. The changes, part of Governor Kathy Hochul’s proposed budget, would cost Trillium Health $5 million annually and would result in devastating cuts to critical programs and services for the most vulnerable members of the community.
What is 340B?
The 340B Prescription Drug Discount Program was established by the federal government in 1992 to help safety net providers serve people who would otherwise fall through the cracks. It allows safety net providers, like Trillium Health, to purchase prescription drugs at a reduced price and reinvest the savings into programs and services for low-income patients.
In 2020, Governor Cuomo passed a budget that would allow New York State to take 340B funding away from safety net providers (known as the Medicaid carve-out). The budget was signed into law and the changes were scheduled to go into effect on April 1, 2021. However, thanks to extensive lobbying and advocacy from several statewide coalitions, the Medicaid carve-out was delayed for two years. The two-year mark is quickly approaching on April 1, 2023. Governor Hochul’s FY24 Executive Budget would allow the Medicaid carve-out to go into effect as planned, however, both the Senate and the Assembly have rejected her proposal. The final state budget will determine the future of the 340B program and the fate of safety net providers across New York State.
How could this impact Trillium Health and the Rochester community?
If the changes to the 340B program take effect, Trillium Health would be forced to make significant cuts to programs and services. Low-income families would have less access to primary care and pharmacy services, which would lead to a rise in unnecessary visits to the emergency room. Support services that help people stay on their medication would be scaled back, resulting in poorer health outcomes, more hospitalizations, and even deaths. Fewer resources to help people experiencing addiction would contribute to a rise in overdoses. In addition, Trillium would be forced to reduce prevention programs, causing a rise in HIV, Hepatitis C, and sexually transmitted infections.
“The devastating impact of these cuts cannot be overstated. Simply put – if the changes to 340B go through, more people will get sick, and more people will die from health conditions that could have been prevented. Even worse, the people who will feel the biggest impact are the most vulnerable members of our community. Trillium Health joins healthcare providers across the state to call for a repeal of the Medicaid carve-out or passage of compromise legislation (A.5911/S.5136) in the final New York State budget. We are extremely grateful for the support from Assemblyman Harry Bronson and other state lawmakers who have stood by our side. The clock is ticking – we need a common-sense solution before it’s too late.”
- Andrea DeMeo, President and CEO, Trillium Health
About Trillium Health
Trillium Health is a community health center in Rochester, NY. We provide extraordinary care to everyone who walks through our doors – regardless of their ability to pay. We’re proud of our legacy as the leading LGBTQ+ healthcare provider in Rochester, and we believe that everyone deserves access to high-quality, affordable, healthcare – regardless of income, sexual orientation, gender identity, race, or ethnicity. Learn more at trilliumhealth.org.