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Committee advances bill to create state oversight for nongovernmental 340B entities
Summary
House Bill 16,48 would authorize state oversight and audit authority for nongovernmental 340B entities that access discounted drug pricing through state in‑kind designations; a CEO of a federally qualified health center testified the change closes an oversight gap without restricting STI programs or affecting government entities.
House Bill 16,48 advanced from the Insurance Committee after sponsor and a visiting witness described it as an accountability measure for nongovernmental participants in the federal 340B drug pricing program. Sponsor explained that 340B entities provide care and medications to vulnerable patients and that the bill establishes verification and enforcement authority for the state agency that administers grants to those entities.
Dr. Shannon Berger, CEO of Simpa Community Care (a federally qualified health center and Ryan White HIV clinic in Chattanooga), told the committee the bill simply fills an oversight gap: "If a nongovernmental organization is going to access this pricing as an in kind designation of the state, there also must be clear oversight." She said the bill would not eliminate STI programs, restrict testing or treatment, or apply to government entities such as county health departments. The committee voted to advance the bill to Calendar and Rules.
