SB 25-124

Senate Bill 25-124, titled "Reducing Costs of Health Care for Patients," requires nonprofit hospitals to use profits from a federal drug pricing program called 340B to lower out-of-pocket costs for low-income patients. The bill also mandates that these hospitals report how they spend the money and provide more charity care. It allows certain small rural hospitals unrestricted access to drugs under this program. Since the bill has been signed, it is now law and hospitals must comply with its requirements.

Official Summary

The bill requires nonprofit hospitals (hospitals) to use 340B profits to decrease out-of-pocket costs for low-income patients. details prohibited uses of 340B profits for nonprofit hospitals. The bill requires entities covered under the federal 340B drug pricing program that are hospitals licensed by the state to report information related to their participation in the 340B program, their use of 340B program profits, their provision of charity care, their payments to third parties for 340B program-related services and compliance, and their use of contract pharmacies. The bill grants sole community hospitals and critical access hospitals unrestricted access to, and delivery of, 340B drugs. The bill requires the joint budget committee to annually issue a request for information to the department of health care policy and financing and to the department of personnel and administration for information related to the losses and costs to the state medical assistance program that arise from a nonprofit hospital's participation in the 340B drug program. (Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.) (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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