Clark County community health centers warn that Governor Bob Ferguson’s proposed budget would cut up to $100 million in their funding, likely forcing them to reduce services and lay off staff. The centers primarily serve low-income or uninsured patients through organizations like Sea Mar Community Health Centers, which operates six medical clinics in Clark County and offers dental, pharmacy, behavioral, and preventive health services. In 2024, Sea Mar served 39,817 patients in Clark County across 212,478 visits.
The proposed budget addresses a $2.3 billion state shortfall by using the majority of the state’s rainy day fund and pulling from other places. One critical change would restructure the Medicaid 340B Drug Pricing Program, which requires pharmaceutical manufacturers participating in Medicaid to sell outpatient drugs at discounted prices to health care organizations. Ferguson’s budget proposes moving the pharmacy benefit out of managed care, eliminating clinics’ 340B savings for Medicaid. Michael Leong, senior vice president of corporate and legal affairs for Sea Mar, stated, “It’s going to be a greater financial strain to Sea Mar. I understand the need for the state to close the budget gap, but I think that this particular way of addressing the budget issues is a bit shortsighted.”
Impact on vulnerable populations and community services
The 340B savings fund critical services that community health centers use to offer patients discounted services, language interpreters, telehealth services, and specialized programs like the Evergreen High School Clinic, an on-campus medical clinic for students and families. These savings also support free care for uninsured patients and free vaccines. While Sea Mar is not considering layoffs currently, the financial reality of the proposed changes could force them to do so in the future.
The proposed cut comes at a time when families struggle to pay for health care. In November, federal tax credits that offset the cost of premiums on some Affordable Care Act plans expired, and a deal to extend them appears unlikely as Senate Republicans and Democrats have yet to agree on a plan. Approximately 17,575 Clark County residents—about 4 percent of the county’s total population—receive those tax credits. Dave Pearson, CEO of the Washington Association for Community Health, urged lawmakers to preserve this funding: “This is not the time to cut critical, nonstate funding to community health centers.”
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://www.columbian.com/news/2026/jan/02/a-greater-financial-strain-clark-county-community-health-centers-say-governors-proposed-budget-could-lead-to-cuts/