Committee bars brown-bagging, limits white-bagging under amendment to drug-dispensing practice
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Summary
An amendment (2025-3018s) adopted by the committee prohibits ‘‘brown bagging’’ and sets conditions under which ‘‘white bagging’’ can occur for specialty and other drugs administered in clinical settings, while allowing pharmacies to opt out under specified conditions.
The Senate Health and Human Services Committee adopted amendment 2025-3018s, which the sponsor described as addressing the pharmacy practices commonly known as ‘‘brown bagging’’ and ‘‘white bagging.’’ The amendment prohibits brown bagging and establishes parameters and communication requirements for white bagging while allowing receiving pharmacies or facilities to opt out under specified conditions.
The sponsor explained that brown bagging is a practice in which a payer sends a drug directly to a patient, who then brings it to a physician’s office or hospital for administration. The amendment ‘‘eliminates that practice,’’ the sponsor said. The sponsor described white bagging as occurring when an insurer or a pharmacy benefit manager ships the drug to a provider or health system for administration; the committee heard testimony that white bagging can create problems when a patient is not cleared for treatment on the day of an appointment and the facility is left holding an expensive, specially handled drug.
The amendment prohibits brown bagging outright and places limits on white bagging, including requirements for communication between dispensing pharmacies, payers, and receiving providers. It preserves narrow flexibility for white bagging in cases where the practice produces significant savings for the health plan, while giving receiving pharmacies or facilities the option to decline participating in white bagging under defined conditions. The sponsor said hospitals and provider organizations were consulted and support the amendment.
Committee members voted to pass the amendment and then moved the underlying bill as amended. The motions were approved by voice consent.
The amendment is intended to protect patients and providers from the logistical and safety concerns the committee heard in testimony while allowing plans and providers to use white bagging in limited, communicated, and opt-in circumstances when cost savings are clear.