Bill > SB589

This bill creates the 340B Program Transparency Act, which requires healthcare providers participating in the federal 340B drug discount program to submit detailed annual reports to the Arkansas Department of Health about their program savings and usage. The bill defines 340B savings as the difference between the discounted drug price and the actual acquisition cost, and mandates that covered entities report comprehensive information including the total number of drug claims, aggregate savings, and how those savings were utilized. Entities must break down their savings allocations across categories like uncompensated care, patient financial assistance, healthcare service expansion, administrative operations, and charitable contributions. The reports must also include detailed metrics about patient populations, services provided in medically underserved areas, and contract pharmacy arrangements. The Department of Health will publicly post these reports within 60 days of submission, with provisions to protect confidential business information. If a covered entity fails to submit a complete and timely report, they may face administrative penalties up to $500 per day, not exceeding $150,000 annually. The act is set to become effective on January 1, 2026, and includes provisions ensuring it does not conflict with federal 340B program regulations.