Committee advances bill on 340B drug distribution after debate over wholesalers, patient definition and state authority

The Senate Financial Institutions and Insurance Committee on March 18 advanced Senate Bill 284, a measure addressing 340B drug distribution, after adopting an amendment that removed wholesalers from certain prohibitions and after rejecting a state‑level definition of who qualifies as a "340B patient." The bill drew extended discussion about federal preemption, rural hospitals, pharmacies and how state action could interact with federal law.

Committee staff member Eileen described the amendment commonly called the "Murphy Amendment," which removes wholesalers and "virtual wholesalers" from the list of entities that "shall not directly or indirectly deny, restrict, prohibit, discriminate against, or otherwise limit the acquisition or delivery of a 340B drug to a covered entity or location otherwise authorized by a covered entity." The amendment also added language allowing the Board of Pharmacy to investigate…