AN ACT Relating to 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;
SB 5981 is a Washington bill aimed at protecting the integrity of the federal 340B drug pricing program. It prohibits drug manufacturers, and third parties acting on their behalf, from directly or indirectly restricting a covered entity’s ability to acquire 340B drugs or to have those drugs delivered to contract pharmacies or other authorized dispensing locations, unless federal law requires otherwise. The bill also bars manufacturers from conditioning access to 340B drugs on the submission of claims, utilization, purchasing, or other data, except where federal law requires such sharing.
The bill creates a private right of action for covered entities to sue manufacturers for violations, authorizes the attorney general to enforce the chapter, and allows courts to issue injunctions, civil penalties, and attorney fees and costs. It also declares violations to be unfair or deceptive acts and unfair methods of competition for purposes of the state Consumer Protection Act, while preserving compatibility with federal law and regulations.
The bill adds a new chapter to Title 70 RCW and amends existing provisions to define key terms such as covered entity, covered drug, covered manufacturer, contract pharmacy, and pharmacy services administrative organization. It establishes annual reporting requirements for covered entities and manufacturers participating in 340B, including data on drug acquisition costs, payments, savings, contract pharmacy use, and how savings are used. The bill also directs the Washington Health Care Authority to collect, analyze, and publish aggregated 340B data, create a reporting template, and administer a new reporting account funded by tiered filing fees paid by covered entities and manufacturers. It further subjects noncompliance with reporting requirements to administrative fines and places collected fines into the Medicaid fraud penalty account.
The overall sentiment reflected in the bill’s legislative history is supportive, with the measure advancing through both chambers and receiving majority approval at each major vote, though not without opposition. The Senate passed the bill on final passage by a 30-18 vote, and the House passed the amended version by 66-29 before the Senate concurred on the House amendments by a 30-19 vote. The committee votes also show consistent support, but with meaningful minority resistance, suggesting the bill was broadly favored as a patient-access and transparency measure while still drawing concerns from some lawmakers.
The main points of contention appear to center on the bill’s restrictions on manufacturer control over 340B distribution and its expanded reporting and fee requirements. Supporters frame the bill as necessary to preserve access to affordable medications for low-income, uninsured, and safety-net patients and to protect savings that fund community benefits. Opponents are likely concerned about the bill’s impact on manufacturers’ ability to manage distribution, data access, and program integrity, as well as the compliance burden and costs imposed on covered entities and manufacturers through reporting, fees, and potential penalties. The inclusion of private enforcement, attorney general authority, and Consumer Protection Act remedies also makes the bill more legally consequential than a simple reporting measure.