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New York State Budget Cuts Threaten HIV Care

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over 40 lawmakers are calling for a reversal.The change involves the 340B Drug Pricing Program, a federal program under which certain providers serving the neediest people can obtain prescription drugs at deep discounts but bill insurance plans, including Medicaid, for the full price.

The money representing the difference between the insurance payment and the discount price of the drugs can be kept by the provider to hire staff, expand services, and make other investments to improve care.

This difference is known as the “spread.”But under the budget adopted by the state legislature and signed into law by Gov. Andrew Cuomo, in order to save money on Medicaid, the 340B pharmacy benefit will be carved out from the Medicaid managed care.

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