First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 25-0153.01 Chelsea Princell x4335
SENATE BILL 25-124
Senate Committees House Committees
Health & Human Services
A BILL FOR AN ACT
C
ONCERNING OUTPATIENT DRUGS THAT ARE SOLD AT A DISCOUNT TO101
NONPROFIT HOSPITALS THROUGH THE FEDERAL 340B DRUG102
PRICING PROGRAM.103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill requires nonprofit hospitals (hospitals) to use 340B profits
to decrease out-of-pocket costs for low-income patients.
The bill requires entities covered under the federal 340B drug
pricing program that are hospitals licensed by the state to report
information related to their participation in the 340B program, their use
SENATE
3rd Reading Unamended
March 26, 2025
SENATE
Amended 2nd Reading
March 25, 2025
SENATE SPONSORSHIP
Kirkmeyer and Gonzales J.,
HOUSE SPONSORSHIP
Brown and Garcia Sander,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. of 340B program profits, their provision of charity care, their payments
to third parties for 340B program-related services and compliance, and
their use of contract pharmacies.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add part 3 to article2
2.5 of title 25.5 as follows:3
PART 34
SAVING PEOPLE MONEY ON5
PRESCRIPTION MEDICATIONS ACT6
25.5-2.5-301. Short title. T
HE SHORT TITLE OF THIS PART 3 IS7
"S
AVING PEOPLE MONEY ON PRESCRIPTION MEDICATIONS ACT".8
25.5-2.5-302. Legislative declaration. (1) T
HE GENERAL
9
ASSEMBLY FINDS THAT:10
(a) N
ONPROFIT HOSPITALS COVERED UNDER THE 340B PROGRAM
11
USE 340B PROFITS TO DECREASE OUT-OF-POCKET COSTS FOR LOW-INCOME12
PATIENTS;13
(b) F
EDERALLY QUALIFIED HEALTH CENTERS , RYAN WHITE
14
CLINICS, STATE AIDS DRUG ASSISTANCE PROGRAMS , AND CHILDREN'S15
HOSPITALS ARE REQUIRED TO REPORT CERTAIN REVENUE AND USE DATA16
TO THE BENEFIT OF THE COMMUNITIES THEY SERVE . NO SIMILARLY17
SITUATED REQUIREMENT EXISTS FOR NONPROFIT HOSPITALS COVERED18
UNDER THE 340B PROGRAM.19
(c) R
EQUIRING HOSPITALS COVERED UNDER THE 340B PROGRAM
20
THAT ARE LICENSED BY THE STATE TO REPORT INFORMATION RELATED TO21
THEIR PARTICIPATION IN THE 340B PROGRAM TO THE STATE WOULD22
CREATE PARITY IN THE USE OF 340B PROGRAM PROFITS.23
(2) T
HEREFORE, THE GENERAL ASSEMBLY DECLARES THAT THE
24
124-2- STATE OF COLORADO HAS BOTH A SPECIFIED INTEREST IN AND PROPER1
RESPONSIBILITY TO MONITOR NONPROFIT HOSPITALS COVERED UNDER THE2
340B
PROGRAM AND ENSURE THEY ARE APPROPRIATELY SERVING THEIR
3
COMMUNITIES AND THE TAXPAYER INTERESTS OF THE STATE .4
25.5-2.5-303. Definitions. A S USED IN THIS PART 3, UNLESS THE5
CONTEXT OTHERWISE REQUIRES :6
(1) "340B
DRUG" MEANS A COVERED OUTPATIENT DRUG , AS7
DEFINED IN 42 U.S.C. SEC. 1396r-8 (k)(2), WHETHER SELF-ADMINISTERED8
OR PROVIDER-ADMINISTERED, THAT IS SUBJECT TO REDUCED PRICES BY A9
MANUFACTURER PURSUANT TO 42 U.S.C. SEC. 256b (a)(1) AND IS10
PURCHASED BY A NONPROFIT HOSPITAL .11
(2) "340B
PROFITS" MEANS THE DIFFERENCE BETWEEN12
AGGREGATED PAYMENTS RECEIVED FROM INSURERS , PAYERS, AND13
SELF-PAYING PATIENTS FOR ALL 340B DRUGS AND AGGREGATED14
ACQUISITION COSTS PAID FOR ALL 340B DRUGS.15
(3) "340B
PROGRAM" MEANS THE FEDERAL DRUG PRICING16
PROGRAM DESCRIBED IN 42 U.S.C. SEC. 256b.17
(4) "C
HARITY CARE" MEANS FREE OR REDUCED -COST HEALTH18
SERVICES PROVIDED BY A HOSPITAL TO PATIENTS WHO ARE UNABLE TO19
PAY.20
21
(5) "CONTRACT PHARMACY " MEANS A PHARMACY THAT A22
NONPROFIT HOSPITAL HAS CONTRACTED WITH TO DISPENSE 340B DRUGS23
ON BEHALF OF THE NONPROFIT HOSPITAL TO PATIENTS OF THE NONPROFIT24
HOSPITAL, WHETHER DISTRIBUTED IN-PERSON, BY MAIL, OR BY OTHER25
MEANS.26
27
124
-3- (6) "NONPROFIT HOSPITAL" MEANS A HOSPITAL THAT IS LICENSED1
BY THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT AND IS A2
PRIVATE NONPROFIT CORPORATION OR HOSPITAL PURSUANT TO 42 U.S.C.3
SEC. 256b (a)(4)(L), (a)(4)(M), OR (a)(4)(O), BUT DOES NOT INCLUDE A4
SOLE COMMUNITY HOSPITAL DESCRIBED IN 42 U.S.C. SEC. 256b (a)(4)(O),5
A CRITICAL ACCESS HOSPITAL DESCRIBED IN 42 U.S.C. SEC. 256b6
(a)(4)(N), D
ENVER HEALTH AND HOSPITALS , A COMPREHENSIVE
7
HEMOPHILIA DIAGNOSTIC TREATMENT CENTER DESCRIBED IN 42 U.S.C.8
SEC. 256b (a)(4)(G), A FEDERALLY-QUALIFIED HEALTH CENTER AS9
DEFINED IN 42 U.S.C. SEC. 1396d (l)(2)(B), RYAN WHITE CLINICS, THE10
C
OLORADO STATE DRUG ASSISTANCE PROGRAM , OR CHILDREN'S HOSPITALS
11
IN COLORADO.12
25.5-2.5-304. Use of 340B drug profits. (1) A13
NONPROFIT HOSPITAL SHALL NOT USE 340B PROFITS FOR THE FOLLOWING14
PURPOSES:15
(a) M
ORE THAN THIRTY-FIVE PERCENT OF TOTAL ANNUAL16
COMPENSATION OR EXPENSE REIMBURSEMENT FOR THE NONPROFIT17
HOSPITAL'S BOARD OF DIRECTORS;18
(b) T
AX PENALTIES OR FINES ISSUED AGAINST THE NONPROFIT19
HOSPITAL;20
(c) E
XPENSES RELATED TO ADVERTISING AND PUBLIC RELATIONS21
THAT PROMOTE THE NONPROFIT HOSPITAL 'S IMAGE, SERVICES, OR22
PROPOSALS, NOT INCLUDING COMMUNICATIONS REQUIRED BY LAW OR23
THAT ARE ESSENTIAL FOR PATIENT SAFETY AND PATIENT INFORMATION ;24
(d) L
OBBYING EXPENSES AND OTHER COSTS INTENDED TO25
INFLUENCE LEGISLATION OR BALLOT MEASURES AT THE LOCAL , STATE, OR26
FEDERAL LEVEL;27
124
-4- (e) TRAVEL, LODGING, FOOD, OR BEVERAGE EXPENSES FOR THE1
NONPROFIT HOSPITAL'S BOARD OF DIRECTORS AND OFFICERS; AND2
(f) G
IFTS OR ENTERTAINMENT EXPENSES .3
25.5-2.5-305.
Hospital transparency reporting. (1) B EGINNING4
J
ULY 1, 2026, AND BY JULY 1 EACH YEAR THEREAFTER , A NONPROFIT5
HOSPITAL SHALL SUBMIT A REPORT TO THE STATE DEPARTMENT ON6
BEHALF OF THE NONPROFIT HOSPITAL AND EACH OFF -SITE FACILITY7
ASSOCIATED WITH THE NONPROFIT HOSPITAL IN THE FORM AND MANNER8
DETERMINED BY THE STATE DEPARTMENT . THE REPORT MUST CONTAIN9
THE FOLLOWING INFORMATION REGARDING THE PRIOR YEAR :10
(a) D
ELINEATED BY FORM OF INSURANCE OR PAYER TYPE ,11
INCLUDING MEDICAID , MEDICARE, COMMERCIAL INSURANCE ,12
SELF-INSURED EMPLOYERS, AND UNINSURED:13
(I) A
GGREGATED ACQUISITION COSTS PAID FOR 340B DRUGS USED14
TO CALCULATE 340B PROFITS;15
(II) A
GGREGATED PAYMENTS RECEIVED FROM INSURERS , PAYERS,16
AND SELF-PAYING PATIENTS FOR ALL 340B DRUGS THAT WERE USED TO17
CALCULATE 340B PROFITS; AND
18
(III) T
OTAL NUMBER OF PRESCRIPTIONS AND THE PERCENTAGE OF19
THE NONPROFIT HOSPITAL'S PRESCRIPTIONS THAT WERE FILLED USING20
340B
DRUGS;21
22
(b) T
OTAL OPERATING COSTS OF THE NONPROFIT HOSPITAL AND23
ITEMIZED COSTS RELATED TO PROVIDING CHARITY CARE ; AND
24
(c) T
OTAL PAYMENTS MADE TO :25
(I) C
ONTRACT PHARMACIES FOR 340B PROGRAM-RELATED26
SERVICES AND OTHER FUNCTIONS ;27
124
-5- (II) THIRD-PARTY ADMINISTRATORS FOR MANAGING ANY1
COMPONENTS OF THE NONPROFIT HOSPITAL 'S 340B PROGRAM; AND2
(III) A
NY OTHER THIRD PARTY IN CONNECTION WITH 340B3
PROGRAM-RELATED COMPLIANCE , LEGAL, EDUCATIONAL , OR4
ADMINISTRATIVE COSTS.5
(2) A
N OFFICER OF THE NONPROFIT HOSPITAL SHALL CERTIFY THE6
COMPLETENESS AND ACCURACY OF THE REPORT SUBMITTED PURSUANT TO7
SUBSECTION (1) OF THIS SECTION.8
(3) T
HE STATE DEPARTMENT SHALL COLLECT
THE REPORTS9
DESCRIBED IN SUBSECTION (1) OF THIS SECTION TO PREPARE A REPORT10
DETAILING INFORMATION RECEIVED FROM NONPROFIT HOSPITALS ,11
INCLUDING 340B PROGRAM REVENUE ACROSS ALL NONPROFIT HOSPITALS12
IN THE STATE. BEGINNING SEPTEMBER 15, 2026, AND EACH SEPTEMBER 1513
THEREAFTER, THE STATE DEPARTMENT SHALL SUBMIT THE AGGREGATED14
REPORT TO THE GENERAL ASSEMBLY AND PUBLISH ALL REPORTS15
SUBMITTED BY A NONPROFIT HOSPITAL PURSUANT TO SUBSECTION (1) OF16
THIS SECTION ON A PUBLICLY ACCESSIBLE WEBSITE .17
25.5-2.5-306. Access to 340B drugs. U
NLESS THE RECEIPT OF
18
340B
DRUGS IS PROHIBITED BY THE FEDERAL DEPARTMENT OF HEALTH
19
AND HUMAN SERVICES, A MANUFACTURER, WHOLESALER, THIRD-PARTY20
LOGISTICS PROVIDER, OR REPACKAGER, OR AN AGENT, CONTRACTOR, OR21
AFFILIATE OF A MANUFACTURER, WHOLESALER, THIRD-PARTY LOGISTICS22
PROVIDER, OR REPACKAGER, INCLUDING AN ENTITY THAT COLLECTS OR23
PROCESSES HEALTH INFORMATION , SHALL NOT, DIRECTLY OR INDIRECTLY,24
DENY, RESTRICT, PROHIBIT, DISCRIMINATE AGAINST, OR OTHERWISE LIMIT25
THE ACQUISITION OF A 340B DRUG BY, OR DELIVERY OF A 340B DRUG TO,26
A HOSPITAL THAT IS EITHER A SOLE COMMUNITY HOSPITAL DESCRIBED IN27
124
-6- 42 U.S.C. SEC. 256b (a)(4)(O) OR A CRITICAL ACCESS HOSPITAL1
DESCRIBED IN 42 U.S.C. SEC. 256b (a)(4)(N).2
25.5-2.5-307. Request of information. (1) BEGINNING3
N
OVEMBER 1, 2026, AND ANNUALLY THEREAFTER , THE JOINT BUDGET
4
COMMITTEE SHALL ISSUE A REQUEST FOR INFORMATION TO THE STATE5
DEPARTMENT REQUESTING INFORMATION ON ANY LOSSES AND COSTS TO6
THE STATE MEDICAL ASSISTANCE PROGRAM ARISING FROM NONPROFIT7
HOSPITAL PURCHASES OF 340B DRUGS AND NONPROFIT HOSPITAL8
PRACTICES RELATED TO PARTICIPATION IN THE 340B PROGRAM.9
(2) B
EGINNING NOVEMBER 1, 2026, AND ANNUALLY THEREAFTER ,10
THE JOINT BUDGET COMMITTEE SHALL ISSUE A REQUEST FOR INFORMATION
11
TO THE DEPARTMENT OF PERSONNEL AND ADMINISTRATION ON ANY12
LOSSES AND COSTS TO THE STATE MEDICAL ASSISTANCE PROGRAM ARISING13
FROM NONPROFIT HOSPITAL PURCHASES OF 340B DRUGS AND NONPROFIT14
HOSPITAL PRACTICES RELATED TO PARTICIPATION IN THE 340B PROGRAM,15
INCLUDING THE TOTAL AGGREGATE VALUE OF LOST MANUFACTURER16
REBATE REVENUE.17
25.5-2.5-308. Enforcement. (1) A VIOLATION OF THIS PART 3 IS18
CONSIDERED AN UNFAIR AND DECEPTIVE TRADE PRACTICE PURSUANT TO19
SECTION 6-1-105 AND SUBJECT TO ENFORCEMENT BY THE ATTORNEY20
GENERAL.21
(2) T
HE ATTORNEY GENERAL MAY INVESTIGATE AND BRING A CIVIL22
ACTION AGAINST THE NONPROFIT HOSPITAL IN A COURT OF COMPETENT23
JURISDICTION FOR A VIOLATION OF THIS PART 3.24
(3) T
HE ATTORNEY GENERAL SHALL ESTABLISH A PROCESS FOR25
INDIVIDUALS TO REPORT SUSPECTED VIOLATIONS OF THIS PART 3 TO THE26
ATTORNEY GENERAL AND A PROCESS FOR THE ATTORNEY GENERAL TO27
124
-7- PROMPTLY AND FULLY INVESTIGATE REPORTS OF SUSPECTED VIOLATIONS .1
SECTION 2. In Colorado Revised Statutes, 6-1-105, add (1)(iiii)2
as follows:3
6-1-105. Unfair or deceptive trade practices - definitions.4
(1) A person engages in a deceptive trade practice when, in the course of5
the person's business, vocation, or occupation, the person:6
(iiii) V
IOLATES PART 3 OF ARTICLE 2.5 OF TITLE 25.5.7
SECTION 3. In Colorado Revised Statutes, 24-31-101, amend8
(1)(i)(XXII) and (1)(i)(XXIII); and add (1)(i)(XXIV) as follows:9
24-31-101. Powers and duties of attorney general. (1) The10
attorney general:11
(i) May independently initiate and bring civil and criminal actions12
to enforce state laws, including actions brought pursuant to:13
(XXII) Part 14 of article 12 of title 38; and
14
(XXIII) Section 24-34-806;
AND15
(XXIV) P
ART 3 OF ARTICLE 2.5 OF TITLE 25.5.16
SECTION 4. Safety clause. The general assembly finds,17
determines, and declares that this act is necessary for the immediate18
preservation of the public peace, health, or safety or for appropriations for19
the support and maintenance of the departments of the state and state20
institutions.21
124
-8-