2SHB 2145
In CommitteeHouse
340B drug pricing program
Protecting patient access to discounted medications and health care services through Washington's health care safety net by preventing manufacturer limitations on the 340B drug pricing program.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill prevents drug manufacturers from blocking safety net health providers in Washington from getting discounted medications through contract pharmacies. It aims to protect patient access to affordable drugs and ensure providers can use savings to support community health services like transportation, wellness visits, and patient assistance.
- Prohibits drug manufacturers, distributors, or third-party logistics providers from restricting or denying access to 340B drugs for covered entities or their contracted pharmacies.
- Bars manufacturers from requiring covered entities to submit data (e.g., sales, usage, or purchasing records) as a condition for receiving discounted drugs, unless federal law requires it.
- Allows covered entities to sue manufacturers for violations and recover civil penalties of up to $5,000 per day per package of drug involved.
- Authorizes the state attorney general to enforce the law under Washington’s Consumer Protection Act, treating violations as unfair or deceptive business practices.
- Clarifies that the law does not conflict with federal requirements and includes a severability clause to preserve remaining provisions if part is struck down.
Who is affected
- Safety net health care providers (covered entities) — These include federally qualified health centers, Ryan White (HIV) clinics, tribal and urban Indian health centers, critical access hospitals, and other safety net hospitals that serve low-income and uninsured patients. They rely on savings from discounted drug purchases to fund essential services like patient assistance, wellness visits, and transportation support.
- Contract pharmacies — Pharmacies that contract with safety net providers to dispense discounted medications under the 340B program may face restrictions from manufacturers that limit patient access or increase administrative burdens.
- Vulnerable patients (low-income, uninsured, or underinsured) — Low-income, uninsured, or underinsured patients who depend on safety net providers for affordable medications and related services—such as chronic disease management, vaccinations, and transportation—may lose access if manufacturers restrict drug distribution.
- State and local government agencies — State and local governments may benefit from stronger enforcement tools and reduced strain on public health systems if safety net providers remain financially stable and able to serve more patients.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (4)
Directly protects access to discounted medications for low-income, uninsured, and underinsured patients by preventing manufacturers from blocking contract pharmacy arrangements—critical for safety net providers to deliver medications and reinvest savings into transportation, wellness, and assistance programs.
HealthcarePeopleRef: Sec. 3(1)Prohibits manufacturers from imposing data-sharing requirements not mandated by federal law, reducing administrative burden on safety net providers and allowing them to focus limited resources on patient care rather than compliance reporting.
HealthcarePeopleRef: Sec. 3(2)Empowers covered entities to sue for civil penalties up to $5,000/day per package, creating a strong deterrent against manufacturer anti-competitive behavior and helping preserve the financial viability of safety net providers.
HealthcarePeopleRef: Sec. 4(1)Authorizes the Attorney General to enforce the law under the Consumer Protection Act, leveraging existing state enforcement capacity to protect vulnerable populations from unfair practices—potentially improving public health outcomes through sustained provider access to affordable drugs.
Public SafetyPeopleRef: Sec. 4(2)
Potential Concerns (3)
Reduces manufacturer flexibility in drug distribution, potentially leading to supply chain disruptions or reduced investment in Washington by manufacturers, which could indirectly limit future drug access or innovation for all patients—including non-340B users—if manufacturers reduce participation in the state's health programs.
HealthcarePeopleRef: Sec. 3(1)Imposes significant liability exposure on manufacturers, distributors, and third-party logistics providers through civil penalties of up to $5,000 per day per package, which may increase compliance costs passed on to all consumers via higher drug prices or reduced product availability.
Business & EmploymentPeopleRef: Sec. 4(1)Increases enforcement burden on the state Attorney General’s office without specifying additional funding, potentially diverting resources from other consumer protection priorities or requiring reallocation of existing staff/time.
Local GovernmentPeopleRef: Sec. 4(2)
Who Is Most Affected
Safety net providers (e.g., FQHCs, tribal clinics, critical access hospitals) directly benefit by retaining full access to 340B savings and avoiding manufacturer-imposed administrative or distribution barriers—allowing them to sustain or expand services like transportation, wellness visits, and patient assistance.
Vulnerable patients—especially low-income, uninsured, or underinsured—benefit most directly: they retain access to discounted medications and related support services (e.g., transportation, adherence counseling) that depend on providers’ ability to use 340B savings. Disruption to contract pharmacy access would disproportionately harm this group.
Contract pharmacies gain clearer legal protection to operate under 340B without manufacturer-imposed restrictions—reducing administrative friction and enabling them to serve more patients through safety net providers without fear of being excluded from drug supply.
State and local governments benefit indirectly through stronger public health infrastructure: stable safety net providers reduce demand on emergency departments, behavioral health systems, and public health programs—though the state bears enforcement costs.
Drug manufacturers face increased compliance risk and potential liability under state law, especially if they currently restrict 340B distribution to protect higher-margin channels—though most large manufacturers already comply with federal 340B rules and may face only incremental cost increases.