WeVote
Log In

Bill

Bill

SB 198

Prohibit certain actions re: reimbursing 340B covered entities

136th Legislature (2025-2026) Introduced by Kyle Koehler

Ohio SB 198 restricts reimbursement practices affecting 340B drug discount program to protect safety-net hospitals' negotiated pricing.

Referred to committee
#healthcare #healthandhumanservices #publichealth
0
WeVote Research Nonpartisan
Bill Summary · SB 198

Legislative bill overview

SB 198 would restrict certain reimbursement practices related to the 340B Drug Pricing Program, which allows covered entities like hospitals and clinics to purchase medications at discounted prices. The bill specifically prohibits actions that would undermine or circumvent these negotiated discount prices when reimbursing covered entities.

Why is this important

The 340B program is designed to help safety-net hospitals and clinics stretch limited resources by purchasing drugs at steep discounts. Restrictions on reimbursement practices could affect how pharmaceutical manufacturers, insurers, and intermediaries interact with these entities, potentially impacting drug pricing dynamics and healthcare costs for vulnerable populations served by these institutions.

Potential points of contention

  • Program scope and definition: The bill's language around "certain actions" may be vague, creating uncertainty about what specific practices are prohibited and how broadly manufacturers or insurers can be restricted
  • Industry impact: Pharmaceutical manufacturers and pharmacy benefit managers may argue the restrictions limit business flexibility and could increase their costs, potentially affecting drug availability or innovation incentives
  • Implementation and enforcement: Questions remain about how the state would monitor compliance and enforce prohibitions, and whether federal 340B program rules take precedence over state law

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.