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Author of bill on drug-manufacturer contracting lays measure over after extended debate over impact on rural hospitals and pharmacies
Summary
Senate Bill 1030, introduced by Sen. Howard to curb manufacturer contract limits that independent pharmacies and 340B hospitals say are excluding them from drug programs, drew extended questions and public-safety and misinformation exchanges before the sponsor asked the committee to lay the bill over for further member briefings.
Senator Allison Howard introduced Senate Bill 1030 during the Senate Business and Insurance Committee to address contracting practices by pharmaceutical manufacturers that she said are limiting independent pharmacies and hospitals participating in the 340B program. Howard described industry practices as harming rural hospitals and independent pharmacies and asked the committee to lay the bill over for additional work.
Why it matters: Howard said manufacturers are imposing limits that “are taking out choices for our independent pharmacists, that are taking out choices for our local hospitals, and they're taking that money away to take it from our citizens.” She argued the limits reduce revenue flowing back to rural hospitals that serve underserved populations and that the bill mirrors language used in other states that has withstood legal challenge, citing Arkansas- and Louisiana‑style provisions and the Fifth Circuit as supportive of similar laws.
Committee exchange and concerns: Committee members pressed the sponsor on details the bill does not specify. Senator Pugh asked whether the sponsor knew who was sending text-message attack ads that the sponsor said had circulated; Howard confirmed she could not identify senders and described them as “shadow group” activity. Senator Grellner asked how many independent pharmacies have closed; Howard replied she did not have a precise count but said independent pharmacies and at least two in Altus had shut down and that Jackson County Memorial Hospital had lost about half the revenue from pharmacy contracting at one point.
On scope and next steps: Howard said the bill is intended to protect hospitals and pharmacies that participate in 340B and other programs and that she had been working on the measure for two years. She told the committee she wanted more time to confer with stakeholders and to refine language and asked the committee to lay the bill over; the committee granted that request and laid the bill over so the sponsor could hold one‑on‑one briefings with members.
Ending: The committee did not vote on the bill at this hearing. The sponsor requested — and received — a layover to give members additional information and to attempt to rebut misinformation circulating about the bill.
