Researcher: JO Page 1 4/10/24
OLR Bill Analysis
sSB 241
AN ACT CONCERNING THE OFFICE OF HEALTH STRATEGY'S
RECOMMENDATIONS REGARDING 340B PROGRAM
TRANSPARENCY.
SUMMARY
This bill requires each covered entity under the federal 340B Drug
Pricing Program to annually report to the Office of Health Strategy
(OHS) on certain matters related to its program participation. The first
reports are due by April 1, 2025, and OHS must post a summary of the
aggregate information received from these reports on the office’s
website.
The 340B Drug Pricing Program requires drug manufacturers
participating in Medicaid to sell certain outpatient prescription drugs at
discounted prices to health care organizations that care for uninsured
and low-income patients, such as federally qualified health centers and
hospitals that serve a disproportionate number of low-income patients.
Under the bill, a “340B covered entity” is an entity authorized to
participate in the program.
EFFECTIVE DATE: October 1, 2024
REPORTING REQUIRE MENT
The bill requires 340B covered entities to annually report to OHS’s
Health Systems Planning Unit in a way set by the OHS executive
director.
Each covered entity must report on its total (1) acquisition cost for
prescription drugs obtained under the program; (2) payment amount
received for these drugs dispensed to patients, and the number of claims
for these drugs; and (3) payments made to pharmacies under contract
to dispense them. If the entity is a hospital, it also must report the
national drug code number for its 50 most frequently dispensed drugs 2024SB-00241-R000382-BA.DOCX
Researcher: JO Page 2 4/10/24
under the program.
The reports also must describe the entity’s programs and services,
including those supporting community access to care, that are funded
partially or fully through its 340B savings and that it could not offer
otherwise.
The bill requires that the reports be disaggregated by payer mix,
including Medicare, Medicaid, and private insurance, as the OHS
executive director determines. Hospitals also must include prescription
drugs dispensed by their outpatient facilities that are child sites listed
on the hospital’s Medicare cost report as reimbursable facilities. (Federal
rules require hospitals to separately register their off-site outpatient
departments, commonly known as child sites, under the program in
order for these sites to be eligible for 340B pricing.)
COMMITTEE ACTION
Public Health Committee
Joint Favorable Substitute
Yea 25 Nay 11 (03/22/2024)