healthcare Clinics say new medicaid program will force them to cut services
Gov.
But the allocation falls far short of what clinic officials say they need to keep critical health care services funded in some of California’s neediest areas. California’s federally qualified health centers, which operate more than 1,000 clinics across the state, have filed a lawsuit in federal court to exempt them from the program, but a judge on Monday denied their request for a temporary reprieve while the lawsuit proceeds.
“People are going to be laid off; services are going to be cut,” said
The drug program, known as Medi-Cal Rx, debuted
On his first day in office in 2019, Newsom promised the overhaul would deliver better health care for patients and generate “substantial annual savings” because the state would negotiate lower prices as one of the largest drug purchasers in the country.
The Newsom administration anticipates the state will save
California’s health clinics, however, could lose up to
At issue is money the clinics have received through a federal prescription drug savings program known as “340B.” The 340B program requires drug manufacturers participating in Medicaid to offer deep discounts to certain providers that care for underserved and uninsured people, including health clinics. The health centers, in turn, must use that money to expand health care services.
Beginning
The
“Plaintiffs have no entitlement to continued profits from selling marked up 340B drugs,” she wrote.
The funding Newsom proposed is not guaranteed. Indeed, it is now subject to the annual budget negotiation process. The legislature has until
“We’re always happy to sit down and try to understand what the conditions are today,” Ghaly said.
California Healthline’s


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