Lawmakers debate 340B program: senator backs anti-discrimination bill; others urge transparency study

Senate Bill 14 and a related proposal for state-level reporting on the 340B drug-discount program drew extended debate in the House Standing Committee on Health Services, with witnesses and members sharply divided on whether to codify protections or first require greater transparency.

Sen. Steve Meredith, the bill sponsor, told the committee Senate Bill 14 would bar manufacturers from “discriminat[ing] or caus[ing] others to discriminate against a 340B entity by refusing or withholding 340B pricing” where the manufacturer offers the same discounted price in other states. Meredith framed the measure as a protection for rural hospitals and other not-for-profit “covered entities” that use 340B-generated revenue to subsidize community health services. “This is a lifeline for our communities,” he said, warning that some manufacturers have withheld discounts and that losses could total “$250,000,000 in Kentucky” if 340B pricing is not protected.

Other witnesses, including Bill Smith of the Pioneer Institute, Jenny Goins of the National Alliance of Healthcare Purchaser Coalitions, Frank Gemley of the Kentucky Association of Manufacturers, and…