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Panel advances bill aimed at protecting 340B discounts for safety-net providers
Summary
House Bill 78, which would bar manufacturers from restricting 340B drug pricing or imposing extra reporting that blocks drug access for covered safety-net entities and their contract pharmacies, passed the committee as amended after extensive debate between safety-net providers and drug industry representatives.
The committee voted to give House Bill 78 a due-pass recommendation after lawmakers and witnesses debated whether state law can and should limit pharmaceutical manufacturers’ ability to impose restrictions on 340B program participation and contract-pharmacy arrangements.
The 340B program is a federal discount program that allows eligible nonprofit safety-net providers to buy certain outpatient drugs at reduced prices; program savings are intended to support care for low-income and uninsured patients. Sponsors and community-health witnesses told the committee that manufacturers have in recent years placed limits on shipments, required extensive reports and otherwise made participation harder for community clinics and rural providers, jeopardizing medication access for vulnerable patients.
“Any savings from the 340B program goes right back into our clinics to provide services,” said Yvette Ramirez Ammerman, CEO of the New Mexico Primary Care Association. Local clinics, hospitals and associations described lost or delayed access to discounted drugs and urged the committee to block unilateral manufacturer restrictions.
Drug manufacturers, industry trade groups and some biotech representatives opposed the bill. Industry witnesses argued that 340B is governed by federal statute and that state-level restrictions could conflict with federal law, disrupt contracting practices, and unintentionally encourage middlemen or contract-pharmacy arrangements that divert savings away from patients.
The sponsor circulated an amendment and the committee approved an amended bill; committee staff noted several states have enacted similar protections and that some provisions have survived litigation. Supporters emphasized the amendment prevents manufacturers from conditioning 340B access on extra data reporting beyond federal requirements and blocks restrictions that would limit covered entities’ choice of contract pharmacies. Opponents said the bill could impede manufacturers’ ability to monitor compliance with federal rules.
The committee recommended a due pass (roll call announced 6–3). Proponents said the measure would preserve drug access for safety-net providers; opponents urged federal reform and warned of unintended consequences.
