Senate committee hears sharply divided testimony on bill limiting drug-makers' 340B contract-pharmacy restrictions

The Senate Committee on Healthcare on May 6 heard more than three hours of testimony on House Bill 2385, which would prohibit drug manufacturers from denying or restricting a covered entity’s ability to acquire or deliver 340B-priced outpatient drugs through contract pharmacies.

Representative Rob Nosse, the bill’s chief sponsor, told the committee the 340B program was created to stretch federal resources and allow hospitals and federally qualified health centers (FQHCs) to reinvest savings into patient services. "This bill simply tells manufacturers they can no longer impose the restriction on 340B program and restore it to its original operation intent," Nosse said, describing how contract-pharmacy limitations adopted by some manufacturers since 2020 have reduced savings that clinics use for services and medication assistance.

Supporters including pharmacists and administrators from FQHCs and rural hospitals described concrete losses and service impacts. "Pharmacy restrictions alone have accounted for over a million dollars loss in revenue in 2024, representing a 40%…