House Health Policy Committee Hears Testimony on HB 4878, Holds Bill; Debate Focuses on 340B Reporting and Contract Pharmacy Rules

Chair Vanderwall opened the hearing on House Bill 4878 and said the committee would take testimony only, noting that he did not intend to vote the bill out of committee at the meeting and expected the measure to be held for further work.

The bill as described by the chair would require 340B entities to report ‘‘money in, money out’’ details: how much they receive through the program, how much they pay contracted pharmacies and consultants, their 50 most‑frequently dispensed drugs and total profit, and how much they spend on community investments such as subsidized care, financial assistance, education, research and Medicare and Medicaid shortfalls. The chair said the bill also would require that “the money made through this program must be used for patient services” and would codify the federal rule that prevents duplicate Medicaid discounts for the same drug.

Why it matters: The 340B program lets qualifying hospitals and covered entities purchase certain drugs at steep discounts; supporters say those savings sustain services in rural and safety‑net settings, while critics contend parts of the program have been leveraged for profit by hospital systems and third parties. Testimony at the hearing highlighted competing claims about who benefits, how widely discounts are shared with patients, and whether state law can and should mandate aspects of a federal program.

Supporters’ case: Hospital systems, federally qualified health…