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Senate passes bill requiring new transparency on use of 340B drug discounts amid sharp debate

March 26, 2025 | Senate, Committees, Legislative, Colorado


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Senate passes bill requiring new transparency on use of 340B drug discounts amid sharp debate
Senate Bill 124, a measure addressing how hospitals report and use savings from the federal 340B drug pricing program, passed the Colorado Senate on third reading March 26, 2025, by a vote of 20 ayes to 14 no, with 1 excused.

The bill’s sponsor, Senator Gonzales, moved SB 124 for final passage. Proponents said the bill's reporting requirements are intended to increase transparency about how hospitals use 340B savings and to ensure dollars support patient care and community health programs.

Senator Malika, speaking in opposition, urged colleagues to vote no and warned that SB 124 could produce unintended consequences for patient care. “These patients are going to not get the care they need. They're going to delay the care, actually,” Malika said, arguing that limits or new requirements could drive litigation and reduce hospitals’ ability to provide charity or specialty services in parts of the state that already face care shortages.

Senator Michaelson Janae also opposed the bill, saying it would “severely restrict the 340B program” and threaten roughly $700,000,000 that currently supports charity care and specialty treatments. Michaelson Janae said the bill would create infeasible reporting requirements for hospitals (noting hospitals lack 340B data disaggregated by payer) and could push contract pharmacies out of the program, reducing access for patients who rely on local pharmacies.

Supporters countered that transparency is necessary to ensure savings go back into patient care rather than to unrelated administrative uses. Debate also referenced previous committee work and related legislation; sponsors said some transparency provisions had been incorporated into a companion bill, Senate Bill 71.

After roll call, the Senate recorded 20 ayes, 14 no, 0 abstain and 1 excused and the bill was declared passed. The transcript shows named senators among the recorded no votes. The measure will proceed per legislative process for enrollment and final actions required before becoming law.

Votes at a glance: SB 124 — Passed, 20–14, 1 excused.

The Senate also recorded cosponsors and formal entry of the vote in the journal. No amendments were reported on the floor at the time of final passage.

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Scribe from Workplace AI
Scribe from Workplace AI