SPONSOR: Keathley
This bill requires covered entities, which are certain health care providers or organizations that meet specific federal requirements and are therefore eligible for participation in the federal 340B drug pricing program, to do the following:
(1) Ensure that all 340B drug proceeds realized from the dispensing of such drugs are used to offset out-of-pocket costs for, or provide direct patient care to, vulnerable patients; and
(2) Before September 1, 2026, and annually thereafter, certify to the Department of Health and Senior Services that the covered entity has met the requirements of this bill, as well as report on information that is specified in the bill.
The bill should not be construed to require a covered entity to disclose personally identifiable patient information or other protected information, and should not be construed to be less restrictive than, or in conflict with, relevant state or federal law.
The Department is required to investigate violations of the provisions of this bill and may discipline, suspend, or revoke the license of any entity under its jurisdiction found to be in violation. Entities found in violation of these provisions are not eligible to receive state or local public funds.
Beginning before December 31, 2026, the Department is required to annually submit a written report to the Governor, the President Pro Tem of the Senate, and the Speaker of the House of Representatives summarizing the information that is required to be reported under the provisions of the bill.
Statutes affected: