Bill > HB712

This bill addresses challenges in the federal 340B Drug Pricing Program, which provides discounted outpatient medications to nonprofit hospitals, community health centers, and other safety net providers. The bill prohibits drug manufacturers from denying or restricting the acquisition, shipping, or delivery of 340B drugs to pharmacies contracted with 340B covered entities, aiming to preserve the program's ability to support low-income and rural populations. It authorizes 340B covered entities and the state Attorney General to bring civil actions for enforcement within four years of a violation, with potential fines ranging from $500 to $2,500 per violation. Starting July 1, 2026, the bill requires 340B covered entities to annually report detailed information about their contract pharmacy usage to the state's hospital trade association, including acquisition costs, insurance payments, and prescription volumes. The hospital trade association must then prepare and publicly post an aggregate report of these submissions. The legislation recognizes that contract pharmacies are crucial in Hawaii, particularly in rural areas where geographic barriers make healthcare access challenging, and seeks to ensure that patients can continue to receive affordable medications through this program. The bill takes effect on July 1, 2025, and is designed to protect the financial sustainability of healthcare services for underserved communities by preventing manufacturers from undermining the 340B program's benefits.

Budget and Finance, Business and Industry, Health and Social Services, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=712&year=2025