Senate panel backs bill protecting 340B contract pharmacies and requiring hospital reporting

BURLINGTON, Vt. — The Senate Committee on Health & Welfare on May 9 voted to amend and report H.266, legislation that would enshrine protections for covered entities that use 340B contract pharmacies and require hospitals to report aggregated information about their participation in the 340B drug pricing program.

The bill would add a new subchapter to Title 18, Chapter 91 establishing a state-level framework for the federal 340B Drug Pricing Program. Under the draft reported by the committee, manufacturers and their agents could not interfere with a covered entity’s use of a contract pharmacy to acquire 340B-priced outpatient drugs; discounts must be applied at the time of purchase rather than as post‑purchase rebates; and the statute would include a private right of action for covered entities, contract pharmacies or others injured by violations of the subchapter. Legislative counsel described the text as expressly not intended to conflict with federal law.

The requirement that hospitals report their 340B participation to the Green Mountain Care Board would begin with the hospital fiscal year ending in 2025, with the first reports due on or before Jan. 30, 2026. Reports must…