SB 27 would hamper bi-partisan effort to reform federal 340B prescription drug program

The federal 340B prescription drug program started out as a well-intended collaboration, created by Congress to help uninsured Americans access the medicines they need. However, in recent years it has grown exponentially in scope, leading to calls for federal reform and much-needed transparency.

The program is based on price controls and federal mandates to meet its objectives. Those market interventions were agreed upon by all the stakeholders, including pharmaceutical manufacturers, when the program was established thirty years ago.

Just recently, a bipartisan group in the Senate launched an investigation of 340B, citing their intent to, “seek information from stakeholders on bipartisan policy solutions to ensure the 340B program has the stability and oversight to continue to achieve its original intention of serving eligible patients,” and their commitment, “to addressing the concerns that have been raised by stakeholders as part of this process, including HRSA’s authorities and resources; contract pharmacy arrangements; the role of PBMs in the program; duplicate discounts; and the promotion of transparency and program integrity.”

The General Assembly is being asked in Senate Bill 27 to significantly expand the intent of the program. Doing so would contribute to a growing multi-state patchwork of laws and regulations that will only make it harder for Congress to reform the program. It would add confusion to an important topic while doing nothing to help patients access their medicines.

Congress – not individual state legislatures – is in the best position to ensure 340B continues to meet its original purpose: helping uninsured Americans access their medications..

KYFREE encourages the state Senate to shelve SB27 and let Congress deal with this federal program.