New bill prohibits pharmaceutical entities from restricting 340B entities access to discounted drugs

January 07, 2025 | 2025 Utah Senate Bills, 2025 Utah Legislative Session, Utah Legislation Bills, Utah


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New bill prohibits pharmaceutical entities from restricting 340B entities access to discounted drugs
A new legislative proposal in Utah, S.B. 69, is set to reshape the landscape of pharmaceutical access for 340B entities, aiming to bolster their ability to acquire discounted medications. Introduced on January 7, 2025, the bill seeks to prevent pharmaceutical companies from imposing restrictions that could hinder 340B entities—organizations that provide care to underserved populations—from accessing essential drugs.

At the heart of S.B. 69 are provisions that prohibit pharmaceutical entities from denying 340B entities the ability to contract with pharmacies or access discounted drug pricing. The bill explicitly forbids practices that could limit the acquisition, dispensing, or delivery of 340B drugs, ensuring that these entities can operate without undue interference from pharmaceutical manufacturers. Notably, it also prevents companies from requiring 340B entities to purchase drugs from specific suppliers or to submit sensitive data as a condition for acquiring medications.

The implications of this bill are significant, particularly for healthcare providers serving low-income communities. By safeguarding the 340B program, S.B. 69 aims to enhance access to affordable medications, potentially improving health outcomes for vulnerable populations. However, the bill may face scrutiny from pharmaceutical companies concerned about the financial impact of expanded access to discounted drugs.

As the legislative process unfolds, stakeholders are closely watching for debates surrounding the balance between pharmaceutical profits and public health needs. If passed, S.B. 69 will take effect on May 7, 2025, marking a pivotal moment in Utah's healthcare policy aimed at supporting equitable access to medications.

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