In a pivotal meeting held on June 10, 2025, the Massachusetts Joint Committee on Financial Services addressed urgent concerns regarding the 340B drug pricing program, a lifeline for community health centers (CHCs) across the state. As the session unfolded, it became clear that the program, which allows these centers to purchase medications at reduced prices, is facing significant challenges that threaten the very fabric of healthcare access for vulnerable populations.

Ruby Pazzanetti, Chief Operating Officer of the Edward M. Kennedy Community Health Center, passionately articulated the stakes involved. She highlighted that the 340B program currently accounts for only 8% of its overall spending, yet it is critical for maintaining affordable medication access for patients. Pazzanetti noted that recent actions by pharmaceutical manufacturers and pharmacy benefit managers (PBMs) have severely restricted the ability of CHCs to benefit from this program. These entities are imposing discriminatory contracting terms that erode the savings that health centers rely on, leading to operational deficits for 78% of surveyed centers.

The implications of these financial strains are dire. With 83% of health centers reporting waitlists for essential services, the ability to provide timely care is jeopardized. Pazzanetti emphasized that without legislative protections, health centers could face a staggering loss of $1.1 billion in Medicaid revenue, further exacerbating the crisis.

The proposed legislation, which mirrors previous efforts, aims to prohibit PBMs from imposing unfair contract terms and mandates that manufacturers ship 340B-priced drugs to all contracted pharmacies. This move, already adopted by 19 other states, seeks to restore the program's integrity and ensure that health centers can continue to serve their communities effectively.

As Massachusetts has long been a leader in healthcare, the urgency of this legislation cannot be overstated. Pazzanetti's testimony underscored the critical role that the 340B program plays in enabling health centers to stretch limited federal resources and provide comprehensive services to those in need. With the state's budget under pressure, the proposed measures promise to restore millions in savings without incurring additional costs to taxpayers.

The meeting concluded with a call to action for lawmakers to prioritize the protection of the 340B program, ensuring that the most vulnerable patients in Massachusetts continue to receive the care they deserve. As the discussion wrapped up, it was evident that the future of healthcare access for many hangs in the balance, resting on the decisions made in the coming weeks.