IN
Indiana Senate Bill SB0118

Indiana 2025 Regular Session

Indiana Senate Bill SB0118 Compare Versions

OldNewDifferences
1-*ES0118.2*
2-Reprinted
3-April 1, 2025
1+*ES0118.1*
2+March 25, 2025
43 ENGROSSED
54 SENATE BILL No. 118
65 _____
7-DIGEST OF SB 118 (Updated March 31, 2025 3:53 pm - DI 147)
6+DIGEST OF SB 118 (Updated March 25, 2025 11:52 am - DI 147)
87 Citations Affected: IC 16-18; IC 16-40.
98 Synopsis: 340B drug program report. Requires certain entities
109 authorized to participate in the federal 340B Drug Pricing Program to
1110 annually report specified data to the Indiana department of health (state
1211 department). Requires the state department to submit a report of the
1312 aggregated data to the legislative council and post the report on the
1413 state department's website.
1514 Effective: July 1, 2025.
1615 Charbonneau, Crider, Johnson T,
1716 Deery, Becker, Busch
1817 (HOUSE SPONSORS — BARRETT, MCGUIRE, ISA)
1918 January 8, 2025, read first time and referred to Committee on Health and Provider
2019 Services.
2120 January 29, 2025, amended, reported favorably — Do Pass.
2221 February 3, 2025, read second time, ordered engrossed. Engrossed.
2322 February 4, 2025, read third time, passed. Yeas 49, nays 1.
2423 HOUSE ACTION
2524 March 3, 2025, read first time and referred to Committee on Public Health.
2625 March 25, 2025, amended, reported — Do Pass.
27-March 31, 2025, read second time, amended, ordered engrossed.
28-ES 118—LS 6292/DI 104 Reprinted
29-April 1, 2025
26+ES 118—LS 6292/DI 104 March 25, 2025
3027 First Regular Session of the 124th General Assembly (2025)
3128 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3229 Constitution) is being amended, the text of the existing provision will appear in this style type,
3330 additions will appear in this style type, and deletions will appear in this style type.
3431 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
3532 provision adopted), the text of the new provision will appear in this style type. Also, the
3633 word NEW will appear in that style type in the introductory clause of each SECTION that adds
3734 a new provision to the Indiana Code or the Indiana Constitution.
3835 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
3936 between statutes enacted by the 2024 Regular Session of the General Assembly.
4037 ENGROSSED
4138 SENATE BILL No. 118
4239 A BILL FOR AN ACT to amend the Indiana Code concerning
4340 health.
4441 Be it enacted by the General Assembly of the State of Indiana:
4542 1 SECTION 1. IC 16-18-2-0.2 IS ADDED TO THE INDIANA CODE
4643 2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4744 3 1, 2025]: Sec. 0.2. "340B covered entity", for purposes of
4845 4 IC 16-40-6, has the meaning set forth in IC 16-40-6-1.
4946 5 SECTION 2. IC 16-18-2-0.3 IS ADDED TO THE INDIANA CODE
5047 6 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
5148 7 1, 2025]: Sec. 0.3. "340B program", for purposes of IC 16-40-6, has
5249 8 the meaning set forth in IC 16-40-6-2.
5350 9 SECTION 3. IC 16-18-2-52.5 IS AMENDED TO READ AS
5451 10 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 52.5. (a) "Charity care",
5552 11 for purposes of IC 16-21-6, and IC 16-21-9, and IC 16-40-6, means the
5653 12 unreimbursed cost to a hospital of providing, funding, or otherwise
5754 13 financially supporting health care services:
5855 14 (1) to a person classified by the hospital as financially indigent or
5956 15 medically indigent on an inpatient or outpatient basis; and
6057 16 (2) to financially indigent patients through other nonprofit or
6158 17 public outpatient clinics, hospitals, or health care organizations.
6259 ES 118—LS 6292/DI 104 2
6360 1 (b) As used in this section, "financially indigent" means an
6461 2 uninsured or underinsured person who is accepted for care with no
6562 3 obligation or a discounted obligation to pay for the services rendered
6663 4 based on the hospital's financial criteria and procedure used to
6764 5 determine if a patient is eligible for charity care. The criteria and
6865 6 procedure must include income levels and means testing indexed to the
6966 7 federal poverty guidelines. A hospital may determine that a person is
7067 8 financially or medically indigent under the hospital's eligibility system
7168 9 after health care services are provided.
7269 10 (c) As used in this section, "medically indigent" means a person
7370 11 whose medical or hospital bills after payment by third party payors
7471 12 exceed a specified percentage of the patient's annual gross income as
7572 13 determined in accordance with the hospital's eligibility system, and
7673 14 who is financially unable to pay the remaining bill.
7774 15 SECTION 4. IC 16-40-6 IS ADDED TO THE INDIANA CODE AS
7875 16 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
7976 17 1, 2025]:
8077 18 Chapter 6. 340B Drug Pricing Program Reporting
8178 19 Sec. 1. (a) As used in this chapter, "340B covered entity" means
82-20 an entity described in 42 U.S.C. 256b(a)(4)(L) through 42 U.S.C.
83-21 256b(a)(4)(O) that:
84-22 (1) is authorized to participate in the federal 340B Drug
85-23 Pricing Program under Section 340B of the federal Public
86-24 Health Service Act (42 U.S.C. 256b(a)(4)); and
87-25 (2) has a service address in Indiana as of January 1 of the
88-26 reporting year.
89-27 (b) The term does not include an entity that is a recipient of a
90-28 grant from the federal Health Resources and Services
91-29 Administration.
92-30 Sec. 2. As used in this chapter, "340B program" refers to the
93-31 federal 340B Drug Pricing Program established under 42 U.S.C.
94-32 256b.
95-33 Sec. 3. (a) Before April 1 of each year, a 340B covered entity
96-34 shall report the following information and transactions to the state
97-35 department concerning the 340B covered entity's participation in
98-36 or participation on behalf of the 340B covered entity in the federal
99-37 340B program for the previous calendar year:
100-38 (1) The:
101-39 (A) name;
102-40 (B) service address;
103-41 (C) 340B program identification number; and
104-42 (D) designation of entity type, as specified in 42 U.S.C.
79+20 an entity authorized to participate in the federal 340B Drug
80+21 Pricing Program under Section 340B(a)(4) of the federal Public
81+22 Health Service Act (42 U.S.C. 256b(a)(4)) and that has a service
82+23 address in Indiana as of January 1 of the reporting year.
83+24 (b) Except as provided in subsection (c), the term includes all
84+25 entity types and grantees, including a facility that is identified as a
85+26 child site or grantee associated site under the 340B program.
86+27 (c) The term does not include the following:
87+28 (1) An entity that is a recipient of a grant from the federal
88+29 Health Resources and Services Administration.
89+30 (2) A federally qualified health center (as defined in 42 U.S.C.
90+31 1396d(l)(2)(B)).
91+32 Sec. 2. As used in this chapter, "340B program" refers to the
92+33 federal 340B Drug Pricing Program established under 42 U.S.C.
93+34 256b.
94+35 Sec. 3. (a) Before April 1 of each year, a 340B covered entity
95+36 shall report the following information and transactions to the state
96+37 department concerning the 340B covered entity's participation in
97+38 or participation on behalf of the 340B covered entity in the federal
98+39 340B program for the previous calendar year:
99+40 (1) The:
100+41 (A) name;
101+42 (B) service address;
105102 ES 118—LS 6292/DI 104 3
106-1 256b(a)(4);
107-2 of the 340B covered entity.
108-3 (2) The aggregate acquisition cost for all prescription drugs
109-4 obtained under the 340B program and dispensed or
110-5 administered to patients.
111-6 (3) The aggregate payment amount received for all drugs
112-7 obtained under the 340B program and dispensed or
113-8 administered to patients.
114-9 (4) The aggregate payment made to pharmacies under
115-10 contract to dispense drugs obtained under the 340B program.
116-11 (5) The number of claims for prescription drugs described in
117-12 subdivision (3).
118-13 (6) How the 340B covered entity uses any savings from
119-14 participating in the 340B program, including the amount of
120-15 savings used for the provision of charity care, community
121-16 benefits, or a similar program of providing unreimbursed or
122-17 subsidized health care.
123-18 (7) The aggregate payments made to any other entity that is
124-19 not a 340B covered entity and is not a contract pharmacy as
125-20 described in subdivision (4) for managing any aspect of the
126-21 340B covered entity's 340B program.
127-22 (8) The aggregate payment made for any other administering
128-23 expense for the 340B program.
129-24 (9) The aggregate number of prescription drugs dispensed or
130-25 administered to patients for which a payment was reported
131-26 under subdivision (3).
132-27 (10) The percentage of the 340B covered entity's claims that
133-28 were for prescription drugs obtained under the 340B
134-29 program.
135-30 (11) The number and percentage of low income patients of the
136-31 340B covered entity that were served by a sliding fee scale for
137-32 a prescription drug dispensed or administered under the 340B
138-33 program.
139-34 (12) The 340B covered entity's total operating costs.
140-35 (13) The 340B covered entity's total costs for charity care.
141-36 (14) A copy of the 340B covered entity's financial assistance
142-37 policy for the reporting year.
143-38 (b) The information required to be reported under subsection
144-39 (a)(3) through (a)(5) must, to the extent feasible, be reported by
145-40 payer type, including the following:
146-41 (1) Commercial.
147-42 (2) Medicaid.
103+1 (C) 340B program identification number; and
104+2 (D) designation of entity type, as specified in 42 U.S.C.
105+3 256b(a)(4);
106+4 of the 340B covered entity.
107+5 (2) The aggregate acquisition cost for all prescription drugs
108+6 obtained through a contract pharmacy under the 340B
109+7 program.
110+8 (3) The aggregate payment amount received for all drugs
111+9 obtained under the 340B program and dispensed to patients
112+10 through a contract pharmacy.
113+11 (4) The aggregate payment made to pharmacies under
114+12 contract to dispense drugs obtained under the 340B program.
115+13 (5) The number of claims for prescription drugs described in
116+14 subdivision (3).
117+15 (6) How the 340B covered entity uses any savings from
118+16 participating in the 340B program, including the amount of
119+17 savings used for the provision of charity care, community
120+18 benefits, or a similar program of providing unreimbursed or
121+19 subsidized health care.
122+20 (7) The aggregate payments made to any other entity that is
123+21 not a 340B covered entity and is not a contract pharmacy as
124+22 described in subdivision (4) for managing any aspect of the
125+23 340B covered entity's 340B program.
126+24 (8) The aggregate payment made for any other administering
127+25 expense for the 340B program.
128+26 (9) The aggregate number of prescription drugs dispensed to
129+27 patients for which a payment was reported under subdivision
130+28 (3).
131+29 (10) The 340B covered entity's total operating costs.
132+30 (11) The 340B covered entity's total costs for charity care.
133+31 (12) A copy of the 340B covered entity's financial assistance
134+32 policy for the reporting year.
135+33 (b) The information required to be reported under subsection
136+34 (a)(3) through (a)(5) must, to the extent feasible, be reported by
137+35 payer type, including the following:
138+36 (1) Commercial.
139+37 (2) Medicaid.
140+38 (3) Medicare.
141+39 (4) Uninsured.
142+40 (c) The data submitted in the reports required under subsection
143+41 (a) is confidential and is not available for public inspection.
144+42 (d) Before November 15 of each year, the state department shall
148145 ES 118—LS 6292/DI 104 4
149-1 (3) Medicare.
150-2 (4) Uninsured.
151-3 (c) The data submitted in the reports required under subsection
152-4 (a) is confidential and is not available for public inspection.
153-5 (d) Before November 15 of each year, the state department shall
154-6 prepare a report that aggregates the data submitted under
155-7 subsection (a) and:
156-8 (1) submit the report to the legislative council in an electronic
157-9 format under IC 5-14-6; and
158-10 (2) post the report on the state department's website.
159-11 Sec. 4. A 340B covered entity that fails to provide the
160-12 information required under section 3 of this chapter by the date
161-13 required shall pay to the state department a fine of one thousand
162-14 dollars ($1,000) per day for which the information is past due.
146+1 prepare a report that aggregates the data submitted under
147+2 subsection (a) and:
148+3 (1) submit the report to the legislative council in an electronic
149+4 format under IC 5-14-6; and
150+5 (2) post the report on the state department's website.
163151 ES 118—LS 6292/DI 104 5
164152 COMMITTEE REPORT
165153 Mr. President: The Senate Committee on Health and Provider
166154 Services, to which was referred Senate Bill No. 118, has had the same
167155 under consideration and begs leave to report the same back to the
168156 Senate with the recommendation that said bill be AMENDED as
169157 follows:
170158 Page 1, between lines 4 and 5, begin a new paragraph and insert:
171159 "SECTION 2. IC 16-18-2-0.3 IS ADDED TO THE INDIANA
172160 CODE AS A NEW SECTION TO READ AS FOLLOWS
173161 [EFFECTIVE JULY 1, 2025]: Sec. 0.3. "340B program", for
174162 purposes of IC 16-40-6, has the meaning set forth in IC 16-40-6-2.".
175163 Page 2, delete lines 11 through 14.
176164 Page 2, line 19, after "1." insert "(a)".
177165 Page 2, line 22, delete "and includes any pharmacy" and insert "and
178166 that has a service address in Indiana as of January 1 of the
179167 reporting year.
180168 (b) The term includes all entity types and grantees, including a
181169 facility that is identified as a child site or grantee associated site
182170 under the 340B program.
183171 Sec. 2. As used in this chapter, "340B program" refers to the
184172 federal 340B Drug Pricing Program established under 42 U.S.C.
185173 256b.".
186174 Page 2, delete lines 23 through 24.
187175 Page 2, line 25, delete "2." and insert "3.".
188176 Page 2, line 26, after "information" insert "and transactions".
189177 Page 2, line 27, after "in" insert "or participation on behalf of the
190178 340B covered entity in".
191179 Page 2, line 28, delete "Drug Pricing Program" and insert
192180 "program".
193181 Page 2, delete line 29, begin a new line block indented and insert:
194182 "(1) The:
195183 (A) name;
196184 (B) service address;
197185 (C) 340B program identification number; and
198186 (D) designation of entity type, as specified in 42 U.S.C.
199187 256b(a)(4);
200188 of the 340B covered entity.".
201189 Page 2, line 30, after "for" insert "all".
202190 Page 2, line 32, after "for" insert "all".
203191 Page 2, line 33, after "dispensed" insert "or administered".
204192 Page 2, after line 42, begin a new line block indented and insert:
205193 ES 118—LS 6292/DI 104 6
206194 "(7) The aggregate payments made to any other entity that is
207195 not a 340B covered entity and is not a contract pharmacy as
208196 described in subdivision (4) for managing any aspect of the
209197 340B covered entity's 340B program.
210198 (8) The aggregate payment made for any other administering
211199 expense for the 340B program.
212200 (9) The aggregate number of prescription drugs administered
213201 or dispensed to patients for which a payment was reported
214202 under subdivision (3).
215203 (10) The percentage of the 340B covered entity's claims that
216204 were for prescription drugs obtained under the 340B
217205 program.
218206 (11) The number and percentage of low income patients of the
219207 340B covered entity that were served by a sliding fee scale for
220208 a prescription drug dispensed or administered under the 340B
221209 program.
222210 (12) The 340B covered entity's total operating costs.
223211 (13) The 340B covered entity's total costs for charity care.
224212 (14) A copy of the 340B covered entity's financial assistance
225213 policy for the reporting year.".
226214 Page 3, between lines 5 and 6, begin a new line block indented and
227215 insert:
228216 "(4) Uninsured.".
229217 Page 3, after line 13, begin a new paragraph and insert:
230218 "SECTION 5. IC 27-1-44.5-11.5 IS ADDED TO THE INDIANA
231219 CODE AS A NEW SECTION TO READ AS FOLLOWS
232220 [EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) The following must
233221 submit information to the data base concerning prescription drug
234222 prices:
235223 (1) A health payer, using patient data claims.
236224 (2) A pharmacy.
237225 (3) A nonprofit hospital pharmacy.
238226 (4) A 340B covered entity (as defined in IC 16-40-6-1).".
239227 Renumber all SECTIONS consecutively.
240228 and when so amended that said bill do pass.
241229 (Reference is to SB 118 as introduced.)
242230 CHARBONNEAU, Chairperson
243231 Committee Vote: Yeas 11, Nays 0.
244232 ES 118—LS 6292/DI 104 7
245233 COMMITTEE REPORT
246234 Mr. Speaker: Your Committee on Public Health, to which was
247235 referred Senate Bill 118, has had the same under consideration and
248236 begs leave to report the same back to the House with the
249237 recommendation that said bill be amended as follows:
250238 Page 2, line 24, delete "The" and insert "Except as provided in
251239 subsection (c), the".
252240 Page 2, between lines 26 and 27, begin a new paragraph and insert:
253241 "(c) The term does not include the following:
254242 (1) An entity that is a recipient of a grant from the federal
255243 Health Resources and Services Administration.
256244 (2) A federally qualified health center (as defined in 42 U.S.C.
257245 1396d(l)(2)(B)).".
258246 Page 3, line 1, after "obtained" insert "through a contract
259247 pharmacy".
260248 Page 3, line 3, delete "or".
261249 Page 3, line 4, delete "administered to patients." and insert "to
262250 patients through a contract pharmacy.".
263251 Page 3, line 12, after "unreimbursed" insert "or subsidized".
264252 Page 3, line 13, delete "care to the indigent." and insert "care.".
265253 Page 3, line 20, delete "administered".
266254 Page 3, line 21, delete "or".
267255 Page 3, delete lines 23 through 29.
268256 Page 3, line 30, delete "(12)" and insert "(10)".
269257 Page 3, line 31, delete "(13)" and insert "(11)".
270258 Page 3, line 32, delete "(14)" and insert "(12)".
271259 Page 3, line 35, delete "(a) must" and insert "(a)(3) through (a)(5)
272260 must, to the extent feasible,".
273261 Page 4, delete lines 6 through 14.
274262 and when so amended that said bill do pass.
275263 (Reference is to SB 118 as printed January 30, 2025.)
276264 BARRETT
277265 Committee Vote: yeas 11, nays 0.
278-ES 118—LS 6292/DI 104 8
279-HOUSE MOTION
280-Mr. Speaker: I move that Engrossed Senate Bill 118 be amended to
281-read as follows:
282-Page 2, delete lines 19 through 31, begin a new paragraph and
283-insert:
284-"Sec. 1. (a) As used in this chapter, "340B covered entity"
285-means an entity described in 42 U.S.C. 256b(a)(4)(L) through 42
286-U.S.C. 256b(a)(4)(O) that:
287-(1) is authorized to participate in the federal 340B Drug
288-Pricing Program under Section 340B of the federal Public
289-Health Service Act (42 U.S.C. 256b(a)(4)); and
290-(2) has a service address in Indiana as of January 1 of the
291-reporting year.
292-(b) The term does not include an entity that is a recipient of a
293-grant from the federal Health Resources and Services
294-Administration.".
295-Page 3, line 6, delete "through a contract pharmacy".
296-Page 3, line 7, delete "program." and insert "program and
297-dispensed or administered to patients.".
298-Page 3, line 9, delete "to patients" and insert "or administered to
299-patients.".
300-Page 3, delete line 10.
301-Page 3, line 26, after "dispensed" insert "or administered".
302-Page 3, between lines 28 and 29, begin a new line block indented
303-and insert:
304-"(10) The percentage of the 340B covered entity's claims that
305-were for prescription drugs obtained under the 340B
306-program.
307-(11) The number and percentage of low income patients of the
308-340B covered entity that were served by a sliding fee scale for
309-a prescription drug dispensed or administered under the 340B
310-program.".
311-Page 3, line 29, delete "(10)" and insert "(12)".
312-Page 3, line 30, delete "(11)" and insert "(13)".
313-Page 3, line 31, delete "(12)" and insert "(14)".
314-Page 4, after line 5, begin a new paragraph and insert:
315-"Sec. 4. A 340B covered entity that fails to provide the
316-information required under section 3 of this chapter by the date
317-required shall pay to the state department a fine of one thousand
318-dollars ($1,000) per day for which the information is past due.".
319-ES 118—LS 6292/DI 104 9
320-(Reference is to ESB 118 as printed March 25, 2025.)
321-MCGUIRE
322266 ES 118—LS 6292/DI 104