*ES0118.2*
Reprinted
April 1, 2025
ENGROSSED
SENATE BILL No. 118
_____
DIGEST OF SB 118 (Updated March 31, 2025 3:53 pm - DI 147)
Citations Affected: IC 16-18; IC 16-40.
Synopsis: 340B drug program report. Requires certain entities
authorized to participate in the federal 340B Drug Pricing Program to
annually report specified data to the Indiana department of health (state
department). Requires the state department to submit a report of the
aggregated data to the legislative council and post the report on the
state department's website.
Effective: July 1, 2025.
Charbonneau, Crider, Johnson T,
Deery, Becker, Busch
(HOUSE SPONSORS — BARRETT, MCGUIRE, ISA)
January 8, 2025, read first time and referred to Committee on Health and Provider
Services.
January 29, 2025, amended, reported favorably — Do Pass.
February 3, 2025, read second time, ordered engrossed. Engrossed.
February 4, 2025, read third time, passed. Yeas 49, nays 1.
HOUSE ACTION
March 3, 2025, read first time and referred to Committee on Public Health.
March 25, 2025, amended, reported — Do Pass.
March 31, 2025, read second time, amended, ordered engrossed.
ES 118—LS 6292/DI 104 Reprinted
April 1, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
ENGROSSED
SENATE BILL No. 118
A BILL FOR AN ACT to amend the Indiana Code concerning
health.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 16-18-2-0.2 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2025]: Sec. 0.2. "340B covered entity", for purposes of
4 IC 16-40-6, has the meaning set forth in IC 16-40-6-1.
5 SECTION 2. IC 16-18-2-0.3 IS ADDED TO THE INDIANA CODE
6 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
7 1, 2025]: Sec. 0.3. "340B program", for purposes of IC 16-40-6, has
8 the meaning set forth in IC 16-40-6-2.
9 SECTION 3. IC 16-18-2-52.5 IS AMENDED TO READ AS
10 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 52.5. (a) "Charity care",
11 for purposes of IC 16-21-6, and IC 16-21-9, and IC 16-40-6, means the
12 unreimbursed cost to a hospital of providing, funding, or otherwise
13 financially supporting health care services:
14 (1) to a person classified by the hospital as financially indigent or
15 medically indigent on an inpatient or outpatient basis; and
16 (2) to financially indigent patients through other nonprofit or
17 public outpatient clinics, hospitals, or health care organizations.
ES 118—LS 6292/DI 104 2
1 (b) As used in this section, "financially indigent" means an
2 uninsured or underinsured person who is accepted for care with no
3 obligation or a discounted obligation to pay for the services rendered
4 based on the hospital's financial criteria and procedure used to
5 determine if a patient is eligible for charity care. The criteria and
6 procedure must include income levels and means testing indexed to the
7 federal poverty guidelines. A hospital may determine that a person is
8 financially or medically indigent under the hospital's eligibility system
9 after health care services are provided.
10 (c) As used in this section, "medically indigent" means a person
11 whose medical or hospital bills after payment by third party payors
12 exceed a specified percentage of the patient's annual gross income as
13 determined in accordance with the hospital's eligibility system, and
14 who is financially unable to pay the remaining bill.
15 SECTION 4. IC 16-40-6 IS ADDED TO THE INDIANA CODE AS
16 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
17 1, 2025]:
18 Chapter 6. 340B Drug Pricing Program Reporting
19 Sec. 1. (a) As used in this chapter, "340B covered entity" means
20 an entity described in 42 U.S.C. 256b(a)(4)(L) through 42 U.S.C.
21 256b(a)(4)(O) that:
22 (1) is authorized to participate in the federal 340B Drug
23 Pricing Program under Section 340B of the federal Public
24 Health Service Act (42 U.S.C. 256b(a)(4)); and
25 (2) has a service address in Indiana as of January 1 of the
26 reporting year.
27 (b) The term does not include an entity that is a recipient of a
28 grant from the federal Health Resources and Services
29 Administration.
30 Sec. 2. As used in this chapter, "340B program" refers to the
31 federal 340B Drug Pricing Program established under 42 U.S.C.
32 256b.
33 Sec. 3. (a) Before April 1 of each year, a 340B covered entity
34 shall report the following information and transactions to the state
35 department concerning the 340B covered entity's participation in
36 or participation on behalf of the 340B covered entity in the federal
37 340B program for the previous calendar year:
38 (1) The:
39 (A) name;
40 (B) service address;
41 (C) 340B program identification number; and
42 (D) designation of entity type, as specified in 42 U.S.C.
ES 118—LS 6292/DI 104 3
1 256b(a)(4);
2 of the 340B covered entity.
3 (2) The aggregate acquisition cost for all prescription drugs
4 obtained under the 340B program and dispensed or
5 administered to patients.
6 (3) The aggregate payment amount received for all drugs
7 obtained under the 340B program and dispensed or
8 administered to patients.
9 (4) The aggregate payment made to pharmacies under
10 contract to dispense drugs obtained under the 340B program.
11 (5) The number of claims for prescription drugs described in
12 subdivision (3).
13 (6) How the 340B covered entity uses any savings from
14 participating in the 340B program, including the amount of
15 savings used for the provision of charity care, community
16 benefits, or a similar program of providing unreimbursed or
17 subsidized health care.
18 (7) The aggregate payments made to any other entity that is
19 not a 340B covered entity and is not a contract pharmacy as
20 described in subdivision (4) for managing any aspect of the
21 340B covered entity's 340B program.
22 (8) The aggregate payment made for any other administering
23 expense for the 340B program.
24 (9) The aggregate number of prescription drugs dispensed or
25 administered to patients for which a payment was reported
26 under subdivision (3).
27 (10) The percentage of the 340B covered entity's claims that
28 were for prescription drugs obtained under the 340B
29 program.
30 (11) The number and percentage of low income patients of the
31 340B covered entity that were served by a sliding fee scale for
32 a prescription drug dispensed or administered under the 340B
33 program.
34 (12) The 340B covered entity's total operating costs.
35 (13) The 340B covered entity's total costs for charity care.
36 (14) A copy of the 340B covered entity's financial assistance
37 policy for the reporting year.
38 (b) The information required to be reported under subsection
39 (a)(3) through (a)(5) must, to the extent feasible, be reported by
40 payer type, including the following:
41 (1) Commercial.
42 (2) Medicaid.
ES 118—LS 6292/DI 104 4
1 (3) Medicare.
2 (4) Uninsured.
3 (c) The data submitted in the reports required under subsection
4 (a) is confidential and is not available for public inspection.
5 (d) Before November 15 of each year, the state department shall
6 prepare a report that aggregates the data submitted under
7 subsection (a) and:
8 (1) submit the report to the legislative council in an electronic
9 format under IC 5-14-6; and
10 (2) post the report on the state department's website.
11 Sec. 4. A 340B covered entity that fails to provide the
12 information required under section 3 of this chapter by the date
13 required shall pay to the state department a fine of one thousand
14 dollars ($1,000) per day for which the information is past due.
ES 118—LS 6292/DI 104 5
COMMITTEE REPORT
Mr. President: The Senate Committee on Health and Provider
Services, to which was referred Senate Bill No. 118, has had the same
under consideration and begs leave to report the same back to the
Senate with the recommendation that said bill be AMENDED as
follows:
Page 1, between lines 4 and 5, begin a new paragraph and insert:
"SECTION 2. IC 16-18-2-0.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 0.3. "340B program", for
purposes of IC 16-40-6, has the meaning set forth in IC 16-40-6-2.".
Page 2, delete lines 11 through 14.
Page 2, line 19, after "1." insert "(a)".
Page 2, line 22, delete "and includes any pharmacy" and insert "and
that has a service address in Indiana as of January 1 of the
reporting year.
(b) The term includes all entity types and grantees, including a
facility that is identified as a child site or grantee associated site
under the 340B program.
Sec. 2. As used in this chapter, "340B program" refers to the
federal 340B Drug Pricing Program established under 42 U.S.C.
256b.".
Page 2, delete lines 23 through 24.
Page 2, line 25, delete "2." and insert "3.".
Page 2, line 26, after "information" insert "and transactions".
Page 2, line 27, after "in" insert "or participation on behalf of the
340B covered entity in".
Page 2, line 28, delete "Drug Pricing Program" and insert
"program".
Page 2, delete line 29, begin a new line block indented and insert:
"(1) The:
(A) name;
(B) service address;
(C) 340B program identification number; and
(D) designation of entity type, as specified in 42 U.S.C.
256b(a)(4);
of the 340B covered entity.".
Page 2, line 30, after "for" insert "all".
Page 2, line 32, after "for" insert "all".
Page 2, line 33, after "dispensed" insert "or administered".
Page 2, after line 42, begin a new line block indented and insert:
ES 118—LS 6292/DI 104 6
"(7) The aggregate payments made to any other entity that is
not a 340B covered entity and is not a contract pharmacy as
described in subdivision (4) for managing any aspect of the
340B covered entity's 340B program.
(8) The aggregate payment made for any other administering
expense for the 340B program.
(9) The aggregate number of prescription drugs administered
or dispensed to patients for which a payment was reported
under subdivision (3).
(10) The percentage of the 340B covered entity's claims that
were for prescription drugs obtained under the 340B
program.
(11) The number and percentage of low income patients of the
340B covered entity that were served by a sliding fee scale for
a prescription drug dispensed or administered under the 340B
program.
(12) The 340B covered entity's total operating costs.
(13) The 340B covered entity's total costs for charity care.
(14) A copy of the 340B covered entity's financial assistance
policy for the reporting year.".
Page 3, between lines 5 and 6, begin a new line block indented and
insert:
"(4) Uninsured.".
Page 3, after line 13, begin a new paragraph and insert:
"SECTION 5. IC 27-1-44.5-11.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) The following must
submit information to the data base concerning prescription drug
prices:
(1) A health payer, using patient data claims.
(2) A pharmacy.
(3) A nonprofit hospital pharmacy.
(4) A 340B covered entity (as defined in IC 16-40-6-1).".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 118 as introduced.)
CHARBONNEAU, Chairperson
Committee Vote: Yeas 11, Nays 0.
ES 118—LS 6292/DI 104 7
COMMITTEE REPORT
Mr. Speaker: Your Committee on Public Health, to which was
referred Senate Bill 118, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 2, line 24, delete "The" and insert "Except as provided in
subsection (c), the".
Page 2, between lines 26 and 27, begin a new paragraph and insert:
"(c) The term does not include the following:
(1) An entity that is a recipient of a grant from the federal
Health Resources and Services Administration.
(2) A federally qualified health center (as defined in 42 U.S.C.
1396d(l)(2)(B)).".
Page 3, line 1, after "obtained" insert "through a contract
pharmacy".
Page 3, line 3, delete "or".
Page 3, line 4, delete "administered to patients." and insert "to
patients through a contract pharmacy.".
Page 3, line 12, after "unreimbursed" insert "or subsidized".
Page 3, line 13, delete "care to the indigent." and insert "care.".
Page 3, line 20, delete "administered".
Page 3, line 21, delete "or".
Page 3, delete lines 23 through 29.
Page 3, line 30, delete "(12)" and insert "(10)".
Page 3, line 31, delete "(13)" and insert "(11)".
Page 3, line 32, delete "(14)" and insert "(12)".
Page 3, line 35, delete "(a) must" and insert "(a)(3) through (a)(5)
must, to the extent feasible,".
Page 4, delete lines 6 through 14.
and when so amended that said bill do pass.
(Reference is to SB 118 as printed January 30, 2025.)
BARRETT
Committee Vote: yeas 11, nays 0.
ES 118—LS 6292/DI 104 8
HOUSE MOTION
Mr. Speaker: I move that Engrossed Senate Bill 118 be amended to
read as follows:
Page 2, delete lines 19 through 31, begin a new paragraph and
insert:
"Sec. 1. (a) As used in this chapter, "340B covered entity"
means an entity described in 42 U.S.C. 256b(a)(4)(L) through 42
U.S.C. 256b(a)(4)(O) that:
(1) is authorized to participate in the federal 340B Drug
Pricing Program under Section 340B of the federal Public
Health Service Act (42 U.S.C. 256b(a)(4)); and
(2) has a service address in Indiana as of January 1 of the
reporting year.
(b) The term does not include an entity that is a recipient of a
grant from the federal Health Resources and Services
Administration.".
Page 3, line 6, delete "through a contract pharmacy".
Page 3, line 7, delete "program." and insert "program and
dispensed or administered to patients.".
Page 3, line 9, delete "to patients" and insert "or administered to
patients.".
Page 3, delete line 10.
Page 3, line 26, after "dispensed" insert "or administered".
Page 3, between lines 28 and 29, begin a new line block indented
and insert:
"(10) The percentage of the 340B covered entity's claims that
were for prescription drugs obtained under the 340B
program.
(11) The number and percentage of low income patients of the
340B covered entity that were served by a sliding fee scale for
a prescription drug dispensed or administered under the 340B
program.".
Page 3, line 29, delete "(10)" and insert "(12)".
Page 3, line 30, delete "(11)" and insert "(13)".
Page 3, line 31, delete "(12)" and insert "(14)".
Page 4, after line 5, begin a new paragraph and insert:
"Sec. 4. A 340B covered entity that fails to provide the
information required under section 3 of this chapter by the date
required shall pay to the state department a fine of one thousand
dollars ($1,000) per day for which the information is past due.".
ES 118—LS 6292/DI 104 9
(Reference is to ESB 118 as printed March 25, 2025.)
MCGUIRE
ES 118—LS 6292/DI 104