STABLE FUNDING FOR HRSA OFFICE OF PHARMACY AFFAIRS

To advocate for a sustainable level of funding, including appropriations, sufficient to support the public health mission of the Health Resources and Services Administration (HRSA) Office of Pharmacy Affairs; further,

To support initiatives of the Office of Pharmacy Affairs, including the 340B Drug Pricing Program and innovative pharmacy service models in HRSA-funded programs; further,

To encourage research on the potential impact of any proposed fees or alternative funding sources for the Office of Pharmacy Affairs.

This policy supersedes ASHP policy 0911.

Rationale

The Office of Pharmacy Affairs (OPA) currently relies on general funding from its parent agency, HRSA, and not a line-item annual appropriation to administer the 340B Drug Discount Program. The OPA and HRSA have sought funding to establish a cost recovery (user fee) program to administer the program. The initial fee would be 0.1 percent of the total 340B drug purchases paid by participating covered entities. HRSA and OPA contend that the cost recovery fee will create a sustainable funding source to meet the demands of the existing and projected growth of the 340B program, the changing marketplace, and new statutory program requirements. 

There is a need for stable and sustainable funding for the OPA. A variety of funding sources should be considered, perhaps involving entities that do not participate in the 340B program. Any user fee program should include an annual review of the percentage used to determine the annual fee charged to participating entities. In addition, OPA should not be solely dependent on user fees for its program administration; some level of congressional appropriations would serve as an important to safeguard against such a dependency.

This policy was reviewed in 2017 by the Council on Public Policy and by the Board of Directors and was found to still be appropriate.