SB 25-071 Colorado Senate · 2025 Regular Session

Prohibit Restrictions on 340B Drugs

Summary
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.)
Bill status signed all 5 stages cleared
Introduction
Jan 2025
Committee Review
May 2025
Senate Passage
Mar 2025
House Passage
May 2025
Signed into Law
May 2025
Introduced Jan 22, 2025 Signed May 30, 2025
Maddy AI version diff · 7 comparisons

What changed between versions

Revised (05/05/2025) PA1 (03/14/2025) · 5 edits
MODERATE
The bill text was renumbered and reformatted for a new version, with the header changed from 'Revised' to 'PREAMENDED' to indicate it is an unofficial version containing committee amendments not yet adopted. Several sections of the bill summary were removed, while new text was added to describe the financial challenges faced by Colorado hospitals and Federally Qualified Health Centers (FQHCs) participating in the 340B drug pricing program, including specific statistics on operating margins and patient demographics.
Scope change
The bill's substantive scope regarding the 340B program remains unchanged; the modifications are primarily editorial and informational additions to the bill summary.
TECHNICAL

The document header was changed from 'REVISED' to 'PREAMENDED' to clarify that this is an unofficial version including committee amendments not yet adopted on second reading.

The list of Senate co-sponsors was removed from the text, though the original bill summary indicated co-sponsors included Michaelson Jenet and Rich, Hinrichsen, Amabile, Coleman, Exum, Frizell, Kolker, Liston, Marchman, Mullica, Pelton R., Roberts, and Snyder.

SCOPE

New text was added to the bill summary to highlight that nearly 90% of Colorado hospitals and 65% of FQHCs participating in the 340B program operate with unsustainable or negative long-term margins.

Additional details were inserted describing how Colorado hospitals and FQHCs use 340B program benefits to provide drug discounts, charity care, opioid treatment, mobile health clinics, immunization clinics, and chemotherapy services.

New statistics were added stating that FQHCs serve one in seven Coloradans, with 89% of patients living below 200% of the federal poverty guideline and 23% being uninsured in 2023.

Floor votes · Senate Mar 26, 2025 · House May 6, 2025

How they voted

304
Passed · 1 other
Total votes 35
Mar 26, 2025
D Democratic23
21 Yea 1 Nay 1
91% Yea
R Republican12
9 Yea 3 Nay
75% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
15
Key actions
6
Committee
3
May 30, 2025
Signed into law
Governor Signed
executive
May 6, 2025
Lower · Passed
House Third Reading Passed - No Amendments
lower
May 3, 2025
Lower · Passed
House Committee on Health & Human Services Refer Unamended to House Committee of the Whole
lower
Apr 30, 2025
Lower · Passed
House Committee on Health & Human Services Witness Testimony and/or Committee Discussion Only
lower
Mar 26, 2025
Introduced
Introduced In House - Assigned to Health & Human Services
lower
Mar 26, 2025
Upper · Passed
Senate Third Reading Passed - No Amendments
upper
Mar 13, 2025
Upper · Passed
Senate Committee on Health & Human Services Refer Amended to Senate Committee of the Whole
upper
Jan 22, 2025
Introduced
Introduced In Senate - Assigned to Health & Human Services
upper
4 primary · 22 co-sponsors

Sponsors