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Committee hears House Bill 276 to protect 340B access for federally qualified health centers
Summary
House Bill 276 received a first hearing in the House Insurance Committee. Sponsors said the bill would bar drug manufacturers from restricting 340B drug distribution to covered entities and would establish state guidelines to ensure FQHCs can use 340B savings to support patient services.
The House Insurance Committee held a first hearing on House Bill 276, which sponsors said would protect participation by federally qualified health centers (FQHCs) in the federal 340B drug pricing program. Testimony said the measure would prohibit drug manufacturers from denying or restricting delivery of 340B drugs to covered entities or requiring claim-data submissions beyond what the U.S. Department of Health and Human Services requires.
Colonel Adam Holmes testified that the bill’s “focus is to help ensure that certain safety net providers eligible for reduced drug prices under the 1992 federal 3 40 b drug pricing program are able to participate in the program as intended,” and he described how 340B savings allow FQHCs to expand services. A second witness, identified in the hearing as Representative John, told the committee that because Ohio has not developed state-specific 340B distribution guidelines some manufacturers limit distribution to contracted pharmacy networks, which forces patients to travel or go without medications.
Committee members asked about transparency and program oversight. Representative Sweeney said transparency concerns are a frequent point of contention and asked whether existing federal or state reporting is sufficient. Sponsors replied they are working on an amendment to address transparency and are coordinating with the state Medicaid department to create a reporting mechanism so pharmacies and manufacturers have the information needed to avoid duplicate payments.
Witnesses and sponsors emphasized that the bill’s current draft focuses only on FQHCs. Testimony noted that FQHCs are required by law to reinvest savings from 340B discounts into services for patients — for example, expanding dental, substance use disorder services, evening and weekend hours, and chronic care management. A sponsor described Ohio FQHCs as serving “nearly a million patients from over 550 locations in 76 of Ohio’s 88 counties.”
There was no committee vote on HB 276 at the first hearing. Sponsors and committee members said they expect additional work on transparency amendments and said the bill was reintroduced because they could not wait for federal action to update 340B distribution guidance.
The committee concluded the first hearing with no recorded votes or further committee action.
