SB 25-071: Prohibit Restrictions on 340B Drugs

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

Under the federal 340B drug pricing program (340B program), a covered entity, including certain hospitals, programs, and federally qualified health centers (covered entity), that serves patients with low income receives discounted outpatient drugs (340B drugs) from manufacturers that participate in the federal medicaid and medicare programs. Unless the receipt of 340B drugs is prohibited by the federal department of health and human services, the act prohibits a manufacturer, third-party logistics provider, or repackager in this state, or an agent, contractor, or affiliate of those entities, including an entity that collects or processes health information, from directly or indirectly denying, restricting, prohibiting, discriminating against, or otherwise limiting the acquisition of a 340B drug by, or delivery of a 340B drug to, a covered entity, a pharmacy contracted with a covered entity, or a location otherwise authorized by a covered entity to receive and dispense 340B drugs. The act also prohibits a manufacturer from directly or indirectly requiring a covered entity, a pharmacy contracted with a covered entity, or any other location authorized to receive 340B drugs by a covered entity to submit any health information, claims or utilization data, or other specified data that does not relate to a claim submitted to certain federal health care programs, unless the data is voluntarily furnished or required to be furnished under federal law. The act defines "340B savings" as the difference between the aggregated market rate costs and the aggregated acquisition costs for 340 B drugs. Certain hospital covered entities are prohibited from using 340B savings for certain purposes. A violation of the prohibitions in the act is an unfair or deceptive trade practice under the "Colorado Consumer Protection Act" (protection act), and the violator is subject to the enforcement provisions and penalties contained in the protection act. In addition, a person regulated by the state board of pharmacy (pharmacy board) that violates the provisions of the protection act may be subject to discipline by the pharmacy board against the person's license, certification, or registration, as well as other penalties. The act requires certain hospital covered entities to annually report to the department of health care policy and financing certain information concerning 340B savings and costs relating to providing charity care. (Note: This summary applies to this bill as enacted.)

Sponsors

Sponsors by party (alphabetical): Democratic 16 · Republican 8

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. May 30, 2025Governor Signed
2. May 15, 2025Signed by the President of the Senate
3. May 15, 2025Signed by the Speaker of the House
4. May 15, 2025Sent to the Governor
5. May 6, 2025House Third Reading Passed - No Amendments
6. May 5, 2025House Second Reading Special Order - Passed - No Amendments
7. May 3, 2025House Committee on Health & Human Services Refer Unamended to House Committee of the Whole
8. April 30, 2025House Committee on Health & Human Services Witness Testimony and/or Committee Discussion Only
9. March 26, 2025Senate Third Reading Passed - No Amendments
10. March 26, 2025Introduced In House - Assigned to Health & Human Services
11. March 25, 2025Senate Second Reading Passed with Amendments - Committee, Floor
12. March 21, 2025Senate Second Reading Laid Over to 03/25/2025 - No Amendments

Showing 12 most recent of 15 actions. Full history