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Pharma and insurers clash over H.266 340B changes; Blue Cross urges transparency as drug markup in Vermont hospitals alarms payers

2953447 · April 10, 2025
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Summary

The Senate Health and Welfare Committee heard competing testimony April 10 on H.266, a bill that would alter 340B contract-pharmacy arrangements and add state-level protections and transparency.

The Senate Health and Welfare Committee heard competing testimony April 10 on H.266, a bill that would alter 340B contract-pharmacy arrangements and add state-level protections and transparency. Witnesses sharply disagreed about whether the proposed changes would protect safety-net providers or lock in a model that benefits middlemen.

Morgan Halloran, director for state policy at Pharmaceutical Research and Manufacturers of America (PhRMA), testified that Section 1 of H.266 would “codify a broken model of the 340B program,” saying contract pharmacy arrangements have been increasingly dominated by vertically integrated pharmacy benefit…

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