Kansas Senate committee hears split testimony on bill to protect 340B contract pharmacies

A Kansas Senate committee heard hours of sharply divided testimony on Senate Bill 284, a measure proponents say would protect access to discounted medicines under the federal 340B drug-pricing program and opponents say would increase costs for employers and state health plans.

The bill, described to the committee by legislative revisor Eileen (last name not specified in the record) as the “Defense of Drug Delivery Act,” would prohibit manufacturers and their agents from denying, restricting or otherwise limiting delivery of a “340B drug” to a covered entity or an authorized pharmacy location, unless state or federal law prohibits it. The revisor also told senators the bill would authorize the Kansas attorney general to adopt rules, issue subpoenas, impose civil penalties and establish a “Defense of Drug Delivery Fund” to administer enforcement; the bill would give the Kansas Board of Pharmacy authority to investigate complaints and discipline licensees and would become effective July 1 if enacted.

The measure drew extensive proponent testimony from safety-net providers and rural hospitals who said manufacturer limits on contract pharmacies have reduced patients’ access to affordable medicines and strained local providers. Senator Michael Murphy, who described bringing related language to the Legislature last year, urged support and said a similar law had been upheld in the Eighth Circuit. "This is something that I felt like was important for us to have," Murphy said, noting the prior amendment passed the Senate floor with 77 votes.

Aaron Dunkel, vice president for regulatory and external affairs at the Community Care Network of Kansas, said the bill would (1) prevent manufacturers from restricting which contract pharmacies covered entities…