On April 2, 2025, Indiana lawmakers introduced Senate Bill 118, a legislative measure aimed at enhancing transparency and accountability among healthcare providers participating in the 340B Drug Pricing Program. This bill seeks to address concerns regarding the accessibility and affordability of medications for low-income residents, particularly those who are uninsured or reliant on Medicare.

The primary focus of Senate Bill 118 is to require 340B covered entities—healthcare organizations that benefit from discounted drug prices—to submit annual reports detailing their drug pricing and distribution practices. These reports, which will be confidential and not available for public inspection, are intended to provide the state with crucial data to monitor compliance and ensure that the benefits of the 340B program are reaching the intended populations. The state department will compile this data into an aggregated report, which will be submitted to the legislative council and made available on the department's website by November 15 each year.

One of the key provisions of the bill includes a penalty for non-compliance. Covered entities that fail to submit the required information by the deadline will incur a fine of $1,000 per day until the information is provided. This measure aims to incentivize timely reporting and adherence to the program's guidelines.

The introduction of Senate Bill 118 has sparked discussions among lawmakers and healthcare advocates. Proponents argue that the bill is a necessary step toward ensuring that the 340B program effectively serves its purpose of reducing drug costs for vulnerable populations. They emphasize that increased transparency will help identify any discrepancies in how discounts are passed on to patients.

However, some opposition has emerged from healthcare providers who express concerns about the administrative burden and potential financial implications of the reporting requirements. Critics argue that the penalties for non-compliance could disproportionately affect smaller healthcare entities already struggling to provide affordable care.

As the bill moves through the legislative process, its implications could be significant for Indiana's healthcare landscape. If passed, it may lead to improved access to medications for low-income residents, while also prompting a reevaluation of how healthcare providers manage their drug pricing strategies. The ongoing debates surrounding Senate Bill 118 highlight the delicate balance between regulatory oversight and the operational realities faced by healthcare organizations in the state.