Member Article

State efforts to address the 340B Drug Program[1] continue to ramp up in 2024.  Early this January, Kentucky Senator Stephen Meredith introduced Senate Bill 27 ("SB-27"), which intends to address a number of purchasing restrictions drug manufacturers unilaterally imposed on health care providers participating in the 340B Program.

If passed as originally written, SB-27 would prohibit drug manufacturers from withholding 340B pricing in Kentucky, if the manufacturer offers the drug at 340B pricing in any other state. The bill would also prohibit drug manufacturers from imposing limits or conditions on the sale of 340B-discounted drugs, except where such limits or conditions are expressly required by state or federal law. In effect, the bill could substantially curb manufacturer-initiated 340B purchasing restrictions in favor of 340B Program participating providers.

In an effort to strengthen enforcement of its terms, SB-27 also includes a protocol to report violations to the Kentucky Attorney General’s Office, as well as a private right of action that could allow health care providers to recover damages resulting from violations.

While SB-27 remains a long way away from becoming law, it will be important for 340B Program stakeholders to track SB-27 as it moves through the Kentucky General Assembly. If you have any questions about SB-27 or the 340B drug program in general, please do not hesitate to contact your Dinsmore health care attorney.

[1] The 340B Drug Pricing Program (the "340B Drug Program") is a US federal government program that requires drug manufacturers to provide drugs to eligible 340B covered entities at a reduced price.