Healthcare

SB 5981 prevents drug manufacturers from restricting how Washington's safety net providers (like community health centers, hospitals serving low-income patients, and HIV clinics) use contract pharmacies to dispense discounted 340B medications. It prohibits manufacturers from denying access to these drugs, blocking contract pharmacy arrangements, or demanding extra data as a condition for supply. The bill allows covered entities to sue for violations, with penalties up to $5,000 per drug package, and requires annual reporting of 340B program activity. This directly protects vulnerable patients' access to affordable medications while safeguarding funding that safety net providers rely on for community services like screenings and financial assistance.

This bill changes how Washington state funds rural emergency hospitals. It requires that payments for services provided by rural emergency hospitals (designated by federal Medicare/Medicaid) must be approved each year through the state budget, rather than being automatically funded. This affects hospitals meeting federal rural emergency hospital criteria, including those that previously received automatic payments. The change applies to all medical assistance program services provided by these hospitals, regardless of patient enrollment in managed care. The bill does not alter existing payment rates but shifts the funding mechanism to annual appropriations.