Legislative committee reviews H.202 transparency rules for 340B drug program; hospitals and advocates differ on burden and benefit

The House Committee on Health Care on Oct. 12 took a close look at sections of H.202 that would require hospitals participating in the federal 340B drug pricing program to file annual, itemized reports with the Green Mountain Care Board and would require insurers and 340B-covered entities to send annual, consumer-level disclosures about prescription drug spending.

Committee members heard that the bill’s reporting requirements would be posted on the Green Mountain Care Board website and would require hospitals to disclose aggregated acquisition costs, aggregated amounts received for dispensed 340B drugs, payments to contract pharmacies and other vendors, administrative expenses and the names of vendors; the number of 340B claims by payer type; and a description of how hospitals use 340B-generated revenue to support community programs. The bill would take effect July 1, with the first hospital reports due on or before July 1, 2026.

Supporters and staff said the required information would increase transparency about how 340B revenues flow through hospitals and whether they support community programs. Catherine O’Neil, director of prescription drug pricing at the Green Mountain Care Board, told the committee that "hospitals do report some aggregate 340B data already to the Green Mountain Care Board as part of their annual submissions. This bill would expand on that reporting." She and GMCB policy analyst Noah Montemarano recommended clarifying the statute’s purpose, aligning…