Colorado 2025 Regular Session

Colorado Senate Bill SB124 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		First Regular Session
2	2		Seventy-fifth General Assembly
3	3		STATE OF COLORADO
4		-	~~REENGROSSED~~
5		-	This Version Includes All Amendments
6		-	~~Adopted~~ in the House of Introduction
	4	+	ENGROSSED
	5	+	This Version Includes All Amendments Adopted
	6	+	on Second Reading in the House of Introduction
7	7		LLS NO. 25-0153.01 Chelsea Princell x4335
8	8		SENATE BILL 25-124
9	9		Senate Committees House Committees
10	10		Health & Human Services
11	11		A BILL FOR AN ACT
12	12		C
13	13		ONCERNING OUTPATIENT DRUGS THAT ARE SOLD AT A DISCOUNT TO101
14	14		NONPROFIT HOSPITALS THROUGH THE FEDERAL 340B DRUG102
15	15		PRICING PROGRAM.103
16	16		Bill Summary
17	17		(Note: This summary applies to this bill as introduced and does
18	18		not reflect any amendments that may be subsequently adopted. If this bill
19	19		passes third reading in the house of introduction, a bill summary that
20	20		applies to the reengrossed version of this bill will be available at
21	21		http://leg.colorado.gov
22	22		.)
23	23		The bill requires nonprofit hospitals (hospitals) to use 340B profits
24	24		to decrease out-of-pocket costs for low-income patients.
25	25		The bill requires entities covered under the federal 340B drug
26	26		pricing program that are hospitals licensed by the state to report
27	27		information related to their participation in the 340B program, their use
28		-	SENATE
29		-	3rd Reading Unamended
30		-	March 26, 2025
31	28		SENATE
32	29		Amended 2nd Reading
33	30		March 25, 2025
34	31		SENATE SPONSORSHIP
35	32		Kirkmeyer and Gonzales J.,
36	33		HOUSE SPONSORSHIP
37	34		Brown and Garcia Sander,
38	35		Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
39	36		Capital letters or bold & italic numbers indicate new material to be added to existing law.
40	37		Dashes through the words or numbers indicate deletions from existing law. of 340B program profits, their provision of charity care, their payments
41	38		to third parties for 340B program-related services and compliance, and
42	39		their use of contract pharmacies.
43	40		Be it enacted by the General Assembly of the State of Colorado:1
44	41		SECTION 1. In Colorado Revised Statutes, add part 3 to article2
45	42		2.5 of title 25.5 as follows:3
46	43		PART 34
47	44		SAVING PEOPLE MONEY ON5
48	45		PRESCRIPTION MEDICATIONS ACT6
49	46		25.5-2.5-301. Short title. T
50	47		HE SHORT TITLE OF THIS PART 3 IS7
51	48		"S
52	49		AVING PEOPLE MONEY ON PRESCRIPTION MEDICATIONS ACT".8
53	50		25.5-2.5-302. Legislative declaration. (1) T
54	51		HE GENERAL
55	52		9
56	53		ASSEMBLY FINDS THAT:10
57	54		(a) N
58	55		ONPROFIT HOSPITALS COVERED UNDER THE 340B PROGRAM
59	56		11
60	57		USE 340B PROFITS TO DECREASE OUT-OF-POCKET COSTS FOR LOW-INCOME12
61	58		PATIENTS;13
62	59		(b) F
63	60		EDERALLY QUALIFIED HEALTH CENTERS , RYAN WHITE
64	61		14
65	62		CLINICS, STATE AIDS DRUG ASSISTANCE PROGRAMS , AND CHILDREN'S15
66	63		HOSPITALS ARE REQUIRED TO REPORT CERTAIN REVENUE AND USE DATA16
67	64		TO THE BENEFIT OF THE COMMUNITIES THEY SERVE . NO SIMILARLY17
68	65		SITUATED REQUIREMENT EXISTS FOR NONPROFIT HOSPITALS COVERED18
69	66		UNDER THE 340B PROGRAM.19
70	67		(c) R
71	68		EQUIRING HOSPITALS COVERED UNDER THE 340B PROGRAM
72	69		20
73	70		THAT ARE LICENSED BY THE STATE TO REPORT INFORMATION RELATED TO21
74	71		THEIR PARTICIPATION IN THE 340B PROGRAM TO THE STATE WOULD22
75	72		CREATE PARITY IN THE USE OF 340B PROGRAM PROFITS.23
76	73		(2) T
77	74		HEREFORE, THE GENERAL ASSEMBLY DECLARES THAT THE
78	75		24
79	76		124-2- STATE OF COLORADO HAS BOTH A SPECIFIED INTEREST IN AND PROPER1
80	77		RESPONSIBILITY TO MONITOR NONPROFIT HOSPITALS COVERED UNDER THE2
81	78		340B
82	79		PROGRAM AND ENSURE THEY ARE APPROPRIATELY SERVING THEIR
83	80		3
84	81		COMMUNITIES AND THE TAXPAYER INTERESTS OF THE STATE .4
85	82		25.5-2.5-303. Definitions. A S USED IN THIS PART 3, UNLESS THE5
86	83		CONTEXT OTHERWISE REQUIRES :6
87	84		(1) "340B
88	85		DRUG" MEANS A COVERED OUTPATIENT DRUG , AS7
89	86		DEFINED IN 42 U.S.C. SEC. 1396r-8 (k)(2), WHETHER SELF-ADMINISTERED8
90	87		OR PROVIDER-ADMINISTERED, THAT IS SUBJECT TO REDUCED PRICES BY A9
91	88		MANUFACTURER PURSUANT TO 42 U.S.C. SEC. 256b (a)(1) AND IS10
92	89		PURCHASED BY A NONPROFIT HOSPITAL .11
93	90		(2) "340B
94	91		PROFITS" MEANS THE DIFFERENCE BETWEEN12
95	92		AGGREGATED PAYMENTS RECEIVED FROM INSURERS , PAYERS, AND13
96	93		SELF-PAYING PATIENTS FOR ALL 340B DRUGS AND AGGREGATED14
97	94		ACQUISITION COSTS PAID FOR ALL 340B DRUGS.15
98	95		(3) "340B
99	96		PROGRAM" MEANS THE FEDERAL DRUG PRICING16
100	97		PROGRAM DESCRIBED IN 42 U.S.C. SEC. 256b.17
101	98		(4) "C
102	99		HARITY CARE" MEANS FREE OR REDUCED -COST HEALTH18
103	100		SERVICES PROVIDED BY A HOSPITAL TO PATIENTS WHO ARE UNABLE TO19
104	101		PAY.20
105	102
106	103		21
107	104		(5) "CONTRACT PHARMACY " MEANS A PHARMACY THAT A22
108	105		NONPROFIT HOSPITAL HAS CONTRACTED WITH TO DISPENSE 340B DRUGS23
109	106		ON BEHALF OF THE NONPROFIT HOSPITAL TO PATIENTS OF THE NONPROFIT24
110	107		HOSPITAL, WHETHER DISTRIBUTED IN-PERSON, BY MAIL, OR BY OTHER25
111	108		MEANS.26
112	109		27
113	110		124
114	111		-3- (6) "NONPROFIT HOSPITAL" MEANS A HOSPITAL THAT IS LICENSED1
115	112		BY THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT AND IS A2
116	113		PRIVATE NONPROFIT CORPORATION OR HOSPITAL PURSUANT TO 42 U.S.C.3
117	114		SEC. 256b (a)(4)(L), (a)(4)(M), OR (a)(4)(O), BUT DOES NOT INCLUDE A4
118	115		SOLE COMMUNITY HOSPITAL DESCRIBED IN 42 U.S.C. SEC. 256b (a)(4)(O),5
119	116		A CRITICAL ACCESS HOSPITAL DESCRIBED IN 42 U.S.C. SEC. 256b6
120	117		(a)(4)(N), D
121	118		ENVER HEALTH AND HOSPITALS , A COMPREHENSIVE
122	119		7
123	120		HEMOPHILIA DIAGNOSTIC TREATMENT CENTER DESCRIBED IN 42 U.S.C.8
124	121		SEC. 256b (a)(4)(G), A FEDERALLY-QUALIFIED HEALTH CENTER AS9
125	122		DEFINED IN 42 U.S.C. SEC. 1396d (l)(2)(B), RYAN WHITE CLINICS, THE10
126	123		C
127	124		OLORADO STATE DRUG ASSISTANCE PROGRAM , OR CHILDREN'S HOSPITALS
128	125		11
129	126		IN COLORADO.12
130	127		25.5-2.5-304. Use of 340B drug profits. (1) A13
131	128		NONPROFIT HOSPITAL SHALL NOT USE 340B PROFITS FOR THE FOLLOWING14
132	129		PURPOSES:15
133	130		(a) M
134	131		ORE THAN THIRTY-FIVE PERCENT OF TOTAL ANNUAL16
135	132		COMPENSATION OR EXPENSE REIMBURSEMENT FOR THE NONPROFIT17
136	133		HOSPITAL'S BOARD OF DIRECTORS;18
137	134		(b) T
138	135		AX PENALTIES OR FINES ISSUED AGAINST THE NONPROFIT19
139	136		HOSPITAL;20
140	137		(c) E
141	138		XPENSES RELATED TO ADVERTISING AND PUBLIC RELATIONS21
142	139		THAT PROMOTE THE NONPROFIT HOSPITAL 'S IMAGE, SERVICES, OR22
143	140		PROPOSALS, NOT INCLUDING COMMUNICATIONS REQUIRED BY LAW OR23
144	141		THAT ARE ESSENTIAL FOR PATIENT SAFETY AND PATIENT INFORMATION ;24
145	142		(d) L
146	143		OBBYING EXPENSES AND OTHER COSTS INTENDED TO25
147	144		INFLUENCE LEGISLATION OR BALLOT MEASURES AT THE LOCAL , STATE, OR26
148	145		FEDERAL LEVEL;27
149	146		124
150	147		-4- (e) TRAVEL, LODGING, FOOD, OR BEVERAGE EXPENSES FOR THE1
151	148		NONPROFIT HOSPITAL'S BOARD OF DIRECTORS AND OFFICERS; AND2
152	149		(f) G
153	150		IFTS OR ENTERTAINMENT EXPENSES .3
154	151		25.5-2.5-305.
155	152		Hospital transparency reporting. (1) B EGINNING4
156	153		J
157	154		ULY 1, 2026, AND BY JULY 1 EACH YEAR THEREAFTER , A NONPROFIT5
158	155		HOSPITAL SHALL SUBMIT A REPORT TO THE STATE DEPARTMENT ON6
159	156		BEHALF OF THE NONPROFIT HOSPITAL AND EACH OFF -SITE FACILITY7
160	157		ASSOCIATED WITH THE NONPROFIT HOSPITAL IN THE FORM AND MANNER8
161	158		DETERMINED BY THE STATE DEPARTMENT . THE REPORT MUST CONTAIN9
162	159		THE FOLLOWING INFORMATION REGARDING THE PRIOR YEAR :10
163	160		(a) D
164	161		ELINEATED BY FORM OF INSURANCE OR PAYER TYPE ,11
165	162		INCLUDING MEDICAID , MEDICARE, COMMERCIAL INSURANCE ,12
166	163		SELF-INSURED EMPLOYERS, AND UNINSURED:13
167	164		(I) A
168	165		GGREGATED ACQUISITION COSTS PAID FOR 340B DRUGS USED14
169	166		TO CALCULATE 340B PROFITS;15
170	167		(II) A
171	168		GGREGATED PAYMENTS RECEIVED FROM INSURERS , PAYERS,16
172	169		AND SELF-PAYING PATIENTS FOR ALL 340B DRUGS THAT WERE USED TO17
173	170		CALCULATE 340B PROFITS; AND
174	171		18
175	172		(III) T
176	173		OTAL NUMBER OF PRESCRIPTIONS AND THE PERCENTAGE OF19
177	174		THE NONPROFIT HOSPITAL'S PRESCRIPTIONS THAT WERE FILLED USING20
178	175		340B
179	176		DRUGS;21
180	177
181	178		22
182	179		(b) T
183	180		OTAL OPERATING COSTS OF THE NONPROFIT HOSPITAL AND23
184	181		ITEMIZED COSTS RELATED TO PROVIDING CHARITY CARE ; AND
185	182		24
186	183		(c) T
187	184		OTAL PAYMENTS MADE TO :25
188	185		(I) C
189	186		ONTRACT PHARMACIES FOR 340B PROGRAM-RELATED26
190	187		SERVICES AND OTHER FUNCTIONS ;27
191	188		124
192	189		-5- (II) THIRD-PARTY ADMINISTRATORS FOR MANAGING ANY1
193	190		COMPONENTS OF THE NONPROFIT HOSPITAL 'S 340B PROGRAM; AND2
194	191		(III) A
195	192		NY OTHER THIRD PARTY IN CONNECTION WITH 340B3
196	193		PROGRAM-RELATED COMPLIANCE , LEGAL, EDUCATIONAL , OR4
197	194		ADMINISTRATIVE COSTS.5
198	195		(2) A
199	196		N OFFICER OF THE NONPROFIT HOSPITAL SHALL CERTIFY THE6
200	197		COMPLETENESS AND ACCURACY OF THE REPORT SUBMITTED PURSUANT TO7
201	198		SUBSECTION (1) OF THIS SECTION.8
202	199		(3) T
203	200		HE STATE DEPARTMENT SHALL COLLECT
204	201		THE REPORTS9
205	202		DESCRIBED IN SUBSECTION (1) OF THIS SECTION TO PREPARE A REPORT10
206	203		DETAILING INFORMATION RECEIVED FROM NONPROFIT HOSPITALS ,11
207	204		INCLUDING 340B PROGRAM REVENUE ACROSS ALL NONPROFIT HOSPITALS12
208	205		IN THE STATE. BEGINNING SEPTEMBER 15, 2026, AND EACH SEPTEMBER 1513
209	206		THEREAFTER, THE STATE DEPARTMENT SHALL SUBMIT THE AGGREGATED14
210	207		REPORT TO THE GENERAL ASSEMBLY AND PUBLISH ALL REPORTS15
211	208		SUBMITTED BY A NONPROFIT HOSPITAL PURSUANT TO SUBSECTION (1) OF16
212	209		THIS SECTION ON A PUBLICLY ACCESSIBLE WEBSITE .17
213	210		25.5-2.5-306. Access to 340B drugs. U
214	211		NLESS THE RECEIPT OF
215	212		18
216	213		340B
217	214		DRUGS IS PROHIBITED BY THE FEDERAL DEPARTMENT OF HEALTH
218	215		19
219	216		AND HUMAN SERVICES, A MANUFACTURER, WHOLESALER, THIRD-PARTY20
220	217		LOGISTICS PROVIDER, OR REPACKAGER, OR AN AGENT, CONTRACTOR, OR21
221	218		AFFILIATE OF A MANUFACTURER, WHOLESALER, THIRD-PARTY LOGISTICS22
222	219		PROVIDER, OR REPACKAGER, INCLUDING AN ENTITY THAT COLLECTS OR23
223	220		PROCESSES HEALTH INFORMATION , SHALL NOT, DIRECTLY OR INDIRECTLY,24
224	221		DENY, RESTRICT, PROHIBIT, DISCRIMINATE AGAINST, OR OTHERWISE LIMIT25
225	222		THE ACQUISITION OF A 340B DRUG BY, OR DELIVERY OF A 340B DRUG TO,26
226	223		A HOSPITAL THAT IS EITHER A SOLE COMMUNITY HOSPITAL DESCRIBED IN27
227	224		124
228	225		-6- 42 U.S.C. SEC. 256b (a)(4)(O) OR A CRITICAL ACCESS HOSPITAL1
229	226		DESCRIBED IN 42 U.S.C. SEC. 256b (a)(4)(N).2
230	227		25.5-2.5-307. Request of information. (1) BEGINNING3
231	228		N
232	229		OVEMBER 1, 2026, AND ANNUALLY THEREAFTER , THE JOINT BUDGET
233	230		4
234	231		COMMITTEE SHALL ISSUE A REQUEST FOR INFORMATION TO THE STATE5
235	232		DEPARTMENT REQUESTING INFORMATION ON ANY LOSSES AND COSTS TO6
236	233		THE STATE MEDICAL ASSISTANCE PROGRAM ARISING FROM NONPROFIT7
237	234		HOSPITAL PURCHASES OF 340B DRUGS AND NONPROFIT HOSPITAL8
238	235		PRACTICES RELATED TO PARTICIPATION IN THE 340B PROGRAM.9
239	236		(2) B
240	237		EGINNING NOVEMBER 1, 2026, AND ANNUALLY THEREAFTER ,10
241	238		THE JOINT BUDGET COMMITTEE SHALL ISSUE A REQUEST FOR INFORMATION
242	239		11
243	240		TO THE DEPARTMENT OF PERSONNEL AND ADMINISTRATION ON ANY12
244	241		LOSSES AND COSTS TO THE STATE MEDICAL ASSISTANCE PROGRAM ARISING13
245	242		FROM NONPROFIT HOSPITAL PURCHASES OF 340B DRUGS AND NONPROFIT14
246	243		HOSPITAL PRACTICES RELATED TO PARTICIPATION IN THE 340B PROGRAM,15
247	244		INCLUDING THE TOTAL AGGREGATE VALUE OF LOST MANUFACTURER16
248	245		REBATE REVENUE.17
249	246		25.5-2.5-308. Enforcement. (1) A VIOLATION OF THIS PART 3 IS18
250	247		CONSIDERED AN UNFAIR AND DECEPTIVE TRADE PRACTICE PURSUANT TO19
251	248		SECTION 6-1-105 AND SUBJECT TO ENFORCEMENT BY THE ATTORNEY20
252	249		GENERAL.21
253	250		(2) T
254	251		HE ATTORNEY GENERAL MAY INVESTIGATE AND BRING A CIVIL22
255	252		ACTION AGAINST THE NONPROFIT HOSPITAL IN A COURT OF COMPETENT23
256	253		JURISDICTION FOR A VIOLATION OF THIS PART 3.24
257	254		(3) T
258	255		HE ATTORNEY GENERAL SHALL ESTABLISH A PROCESS FOR25
259	256		INDIVIDUALS TO REPORT SUSPECTED VIOLATIONS OF THIS PART 3 TO THE26
260	257		ATTORNEY GENERAL AND A PROCESS FOR THE ATTORNEY GENERAL TO27
261	258		124
262	259		-7- PROMPTLY AND FULLY INVESTIGATE REPORTS OF SUSPECTED VIOLATIONS .1
263	260		SECTION 2. In Colorado Revised Statutes, 6-1-105, add (1)(iiii)2
264	261		as follows:3
265	262		6-1-105. Unfair or deceptive trade practices - definitions.4
266	263		(1) A person engages in a deceptive trade practice when, in the course of5
267	264		the person's business, vocation, or occupation, the person:6
268	265		(iiii) V
269	266		IOLATES PART 3 OF ARTICLE 2.5 OF TITLE 25.5.7
270	267		SECTION 3. In Colorado Revised Statutes, 24-31-101, amend8
271	268		(1)(i)(XXII) and (1)(i)(XXIII); and add (1)(i)(XXIV) as follows:9
272	269		24-31-101. Powers and duties of attorney general. (1) The10
273	270		attorney general:11
274	271		(i) May independently initiate and bring civil and criminal actions12
275	272		to enforce state laws, including actions brought pursuant to:13
276	273		(XXII) Part 14 of article 12 of title 38; and
277	274		14
278	275		(XXIII) Section 24-34-806;
279	276		AND15
280	277		(XXIV) P
281	278		ART 3 OF ARTICLE 2.5 OF TITLE 25.5.16
282	279		SECTION 4. Safety clause. The general assembly finds,17
283	280		determines, and declares that this act is necessary for the immediate18
284	281		preservation of the public peace, health, or safety or for appropriations for19
285	282		the support and maintenance of the departments of the state and state20
286	283		institutions.21
287	284		124
288	285		-8-