Erie Launches 340B Drug Pricing Program
May 11, 2010 | Lee
When George received the call from veteran Erie nurse practitioner Ann McCormick that the cost for his insulin prescription was about to go from $330 for a three month supply to less than $20, he was thrilled. He lacks health insurance and his work schedule does not allow him time to travel all the way to Stroger Hospital of Cook County to stand in long lines in hopes of receiving discounted medications.
“This really means so much to him not to have to pay so much,” McCormick explained. “George uses about 2 bottles of insulin per month and he was paying retail prices of about $55 per bottle at a large chain pharmacy.”
George is one of the first Erie patients to take advantage of the new 340B discounted pharmacy services which Erie is offering in partnership with Pharmacy One, a local pharmacy right next door to Erie Helping Hands.
In 1992, Congress created the 340B Drug Pricing Program. This allows health care providers serving low income populations, such as federally qualified health centers like Erie, to purchase medications at deeply discounted prices. Health centers can then pass these savings along to patients who have no health insurance.
“We decided we would partner with local mom and pop pharmacies close to each of our large sites,” explained Zizi Atia, Erie’s Chief Financial Officer who helped push the program through. “The mom and pops tend to speak our patients’ languages and offer education and counseling.”
This is how this program works: using a list of medications approved by Erie’s pharmacy committee, Erie purchases medications from a special federally approved vendor at a deep discount. The medications are shipped directly to the pharmacy, where they are dispensed to patients as Erie providers write prescriptions. The patient pays cost and the pharmacy adds a reasonable dispensing fee to cover processing costs. Each month, Erie and the pharmacy reconcile the books and replenish supplies. To qualify for the program, Erie’s patients may not have any other source of insurance coverage for medications. When all is tallied, the discount from the average retail pharmacy price is more than 50% per medication, even if it is brand name and not generic. With generic medications, the prices are even lower.
The 340B program will soon be launched at other Erie sites, adding to the menu of pharmacy services Erie already offers to help patients access affordable medications.
It’s not unusual for patients to forgo taking needed medications. For example, a recent study revealed that only 34% of all patients being treated for high blood pressure have their condition under control. “One reason is poor adherence to medication regimens and one reason for that is the sheer expense of the treatment,” according to David Buchanan, Erie’s Chief Medical Officer.
Who knows what “340B” actually means in government speak. But one thing is for sure: it means more Erie patients will be able to afford their medications.
“George has now switched all his other meds into the 340B program, “McCormick beamed. She can’t wait to replicate the success with more of her patients.
