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Indiana enacts new regulations on 340B Drug Pricing Program for nonprofit hospitals

April 16, 2025 | 2025 House Enrolled Bills, 2025 Enrolled Bills, 2025 Bills, Indiana Legislation Bills, Indiana


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Indiana enacts new regulations on 340B Drug Pricing Program for nonprofit hospitals
Indiana lawmakers have introduced House Bill 1003, a significant piece of legislation aimed at regulating the pricing of prescription drugs obtained through the federal 340B Drug Pricing Program. Introduced on April 16, 2025, the bill seeks to ensure that individuals receiving medications from 340B covered entities are not charged more than the price these entities pay for the drugs.

The primary provisions of House Bill 1003 include a mandate that, starting January 1, 2027, 340B covered entities cannot charge patients more than the acquisition cost of the drugs. This is a crucial step in addressing the rising costs of prescription medications, particularly for medically underserved populations who rely on these programs for affordable healthcare.

Additionally, the bill requires that when billing for these drugs, covered entities must include specific modifiers in their claims to ensure compliance and transparency. The Indiana state department will be responsible for enforcing these regulations and has the authority to impose civil penalties of up to $1,000 for violations, which will vary based on the nature and frequency of the infractions.

While the bill has garnered support for its potential to lower drug costs for vulnerable populations, it has also sparked debates regarding its implications for healthcare providers. Critics argue that the enforcement of such pricing regulations could strain the financial viability of some healthcare facilities, particularly those that rely heavily on the 340B program to subsidize care for low-income patients.

The economic implications of House Bill 1003 are significant, as it aims to alleviate the financial burden on patients while ensuring that healthcare providers can continue to operate effectively. Experts suggest that if implemented successfully, the bill could lead to improved access to necessary medications for many Indiana residents, particularly those in underserved communities.

As the legislative process unfolds, stakeholders from various sectors, including healthcare providers, patient advocacy groups, and policymakers, will be closely monitoring the bill's progress. The outcome of House Bill 1003 could set a precedent for how prescription drug pricing is managed in Indiana and potentially influence similar legislation in other states.

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Scribe from Workplace AI
Scribe from Workplace AI