Bill > SB071

This bill establishes the Colorado 340B Contract Pharmacy Protection Act, which aims to protect hospitals and federally qualified health centers (FQHCs) participating in the 340B Drug Pricing Program. The program, created by Congress in 1992, requires drug manufacturers to provide discounts on outpatient drugs to eligible healthcare providers. The bill prohibits pharmaceutical manufacturers from imposing restrictions or limitations on 340B covered entities' ability to acquire and distribute 340B drugs through contract pharmacies. It also mandates that manufacturers cannot require covered entities to submit unnecessary health information or data unrelated to federal healthcare program claims. Additionally, the bill restricts how 340B savings can be used by hospitals, prohibiting their use for expenses like excessive board compensation, advertising, lobbying, and entertainment. Hospitals participating in the 340B program must now include detailed reporting on their 340B savings, how those savings are used, and their operating costs in annual reports. The legislation is motivated by the significant financial challenges faced by Colorado's healthcare providers, noting that nearly 90% of participating hospitals and 65% of FQHCs operate with negative margins, while large pharmaceutical companies continue to report substantial earnings. The bill allows the Attorney General to investigate complaints and impose penalties for violations, with each package of a 340B drug constituting a separate potential violation.

Health and Social Services

https://leg.colorado.gov/bills/sb25-071