Colorado’s 21 Community Health Centers (CHCs, also called federally qualified heath centers, or health centers), and the 867,000 Coloradans we serve, depend on savings from the 340B prescription drug pricing program.

340B is a 30-year-old federal program that allows qualifying providers that serve a significant number of uninsured or publicly insured individuals to buy medications for their patients at a discount from drug companies. These discounts are lifesaving for patients and help keep the doors open at CHCs — a majority of whom reported negative financial margins this year.

At the end of March, Colorado state senators voted in favor of SB25-071, which requires drug companies to provide 340B discounts for CHC patients regardless of whether the patient fills their prescription at a CHC’s in-house pharmacy, or if they visit a pharmacy with which the CHC has a contract (think Walgreens, CVS, an independent neighborhood pharmacy, etc.). This is essential for patient access to medications, particularly for Coloradans in rural areas, or those with limited access to transportation.

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To be clear, this bill does not expand the 340B program. It will simply require drug companies to comply with federal law and allow CHC patients to continue to access discounted medications in more convenient locations, rather than having to travel miles to their CHC’s pharmacy for the same product at the same price. For example, one CHC in the San Luis Valley can only afford to operate one in-house pharmacy, and it is more than 150 miles from some of their patients; an insurmountable distance to travel for routine medication.

Although the number of covered entities hasn’t grown much, it is true there has been growth in the program, especially during the last 10 years. That growth, however, is tied to the average amount the drug manufacturers charge for each drug. When pharmaceutical companies charge more for drugs, the overall discounts they have to offer grow too, resulting in “program growth.”

Due to their nonprofit status, if a CHC sees any savings from the 340B program, they are legally required by the federal government to reinvest those savings back into patient services. CHCs use 340B savings to provide discounts on medications for their patients who need it most, in addition to funding critical programs like dental and behavioral health. During a time when CHCs are facing significant financial hurdles and funding uncertainty at a federal level, 340B savings are a lifeline. For the clinic and their patients.

CHCs are highly regulated by the federal government and must meet strict compliance standards in order to participate in the 340B program. CHCs conduct monthly internal audits and contract for annual external audits to maintain compliance, as well as recertifying annually with the federal government as good stewards of the 340B program. This stringent compliance is required for any drugs prescribed by a CHC provider, regardless of where the patient picks up their medication. Even at contract pharmacies, only patients who receive their health care from 340B-covered entities, like CHCs, are eligible for these discounts.

We urge Colorado House Representatives to support SB25-071 to support Colorado’s safety net, and the millions of patients who rely on care from providers like Community Health Centers for affordable, high-quality, accessible care.

Polly Anderson is vice president of strategy and financing at Colorado Community Health Network, the association for Colorado’s 21 Community Health Centers that serve as a primary care home for one in seven Coloradans.