Kansas Senate Bill SB540

Kansas 2023-2024 Regular Session

• Introduced: 3/8/24
• Refer: 3/11/24
• Failed: 4/30/24

Caption

Prohibiting certain discriminatory actions related to reimbursement of entities participating in the federal 340B drug pricing program.

Impact

If enacted, SB540 will have substantial implications for state laws concerning pharmaceutical regulations and consumer protections. Specifically, it will align state law with federal provisions while providing a clearer framework for enforcing the rights of 340B-covered entities and their contracted pharmacies. By categorizing violations of this act under the Kansas Consumer Protection Act, the bill empowers consumers and healthcare providers to challenge discriminatory practices that may arise in the drug reimbursement process. This aligns with broader intentions to ensure equitable access to medications for low-income individuals.

Summary

Senate Bill 540 establishes the 'Defense of Affordable Prescriptions Act', aimed at regulating interactions between drug manufacturers and entities participating in the federal 340B drug pricing program. The bill restricts manufacturers from interfering with the acquisition and delivery of drugs through the 340B program, ensuring that pharmacies under contract with 340B-covered entities can operate effectively without undue hindrance. This legislation is significant as it addresses an ongoing concern regarding access to affordable medication for vulnerable populations who rely on 340B drugs.

Contention

Despite the potential benefits, SB540 may encounter opposition from pharmaceutical manufacturers who argue that the bill could limit their operational control and profitability. Controversy may arise concerning how the restrictions could impact the availability of certain drugs, or how manufacturers might adjust their pricing strategies in response to these requirements. Stakeholders from the pharmaceutical industry may advocate that such regulations could inhibit innovation or lead to increased prices for consumers outside the 340B program, which could counteract the intended benefits of the legislation.