Sen. Valverde, Rep. Brien honored by R.I. Health Center Association for bill to protect funding
STATE HOUSE – The Rhode Island Health Center Association today presented its John H. Chafee Healthcare Leadership Award to Sen. Bridget Valverde and Rep. Jon D. Brien for their successful passage of the Defending Affordable Prescription Drug Costs Act this year.
The legislation (2025-S 0114Aaa, 2025-H 5634Aaa), which became law in June and took effect Oct. 1, protects a critical and endangered funding source for many community hospitals, clinics and other health care agencies by prohibiting insurers, pharmacy benefits managers and other payors from discriminating against them for purchasing prescriptions through the federal 340 B discount program.
“The 340 B Program is complicated and difficult to explain. Senator Valverde and Representative Brien not only clarified the program and explained why the legislation was beneficial to Rhode Islanders, but they exhibited the passion needed to get the bill passed! The community health centers are already benefiting from the law as drug manufacturers begin to comply. These awards are a symbol of the enormous gratitude we have for Senator Valverde, Representative Brien and the bill’s cosponsors for their sustained, courageous and successful efforts,” said Elena Nicolella, president and CEO of the Rhode Island Health Center Association.
The award, which recognizes efforts to strengthen and sustain Rhode Island’s community health centers following the model of U.S. Sen. John H. Chafee, was presented to Representative Brien (I-Dist. 49, Woonsocket, North Smithfield) and Senator Valverde (D-Dist. 35, North Kingstown, East Greenwich, South Kingstown) by Providence Community Health Centers CEO Merrill Thomas at the Rhode Island Health Center Association’s annual meeting, held this morning at the Providence Marriott.
The 340 B program requires drug manufacturers to sell their drug at a discount to 340 B-qualified agencies— community health centers, safety-net hospitals and rural clinics that serve a high percentage of poor and uninsured patients — in order for the drug to qualify for coverage Medicaid and Medicare Part B. Those agencies reinvest those savings into direct patient care — providing services such as primary care, behavioral health, dental services and addiction treatment to tens of thousands of Rhode Islanders who would otherwise not be able to afford them.
But in recent years, some pharmaceutical companies and pharmacy benefit managers (PBMs) have undermined the program by reimbursing 340 B-participating agencies at lower rates, thereby reducing or eliminating the funding that the program is supposed to generate for patient services. That practice has meant millions in losses for health agencies that serve Rhode Islanders, particularly those of fewer means. The legislation prohibited that practice and others, such as requiring the drugs to come from a particular pharmacy or placing any other restrictions solely on 340 B entities.