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SB 25-071

Prohibit Restrictions on 340B Drugs

2025 Regular Session Introduced by Judy Amabile and 25 co-sponsors

Prohibits insurers and PBMs from restricting 340B drugs, safeguarding 340B entities' ability to obtain, dispense, and be reimbursed for these discounted medicines.

Governor Signed
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WeVote Research Nonpartisan
Bill Summary · SB 25-071

SB 25‑071 — Prohibit Restrictions on 340B Drugs (Governor Signed)

Overview

  • Bill number: SB 25‑071
  • Title: Prohibit Restrictions on 340B Drugs
  • Status: Governor Signed (2025‑05‑30)
  • Introduced: 2025‑01‑22
  • Sponsors: Multiple — primary sponsors include Dafna Michaelson Jenet, Rick Taggart, Janice Rich, and Matthew Martinez; many bipartisan cosponsors from both chambers.

This summary explains the bill’s purpose, probable scope based on its title, who is affected, and the legislative timeline. The official bill text was not included with your materials; where necessary I note when language or details are not available in the provided document.

Background — the 340B program

The federal 340B Drug Pricing Program requires manufacturers to sell outpatient drugs at discounted prices to qualifying “covered entities” (safety‑net providers such as community health centers, certain hospitals, and clinics). States sometimes adopt rules governing how insurers, pharmacy benefit managers (PBMs), and payors treat drugs purchased under 340B.

Purpose and intent

Per the bill title, SB 25‑071 is intended to prohibit restrictions on drugs acquired through the federal 340B program. The stated policy goal is to protect 340B covered entities’ ability to obtain, dispense, and be reimbursed for 340B‑purchased drugs without interference from payors or PBMs that might limit access or reduce the economic benefit of 340B purchasing.

Key provisions (based on title and legislative context)

The full statutory text was not provided. The bill title indicates it would do one or more of the following:
- Prohibit insurers, Medicaid managed care plans, PBMs, or other payors from imposing restrictions that prevent use of 340B‑purchased drugs for patients served by 340B covered entities.
- Bar practices such as exclusion from networks, differential prior authorization or step‑therapy rules that single out 340B dispensed drugs, or reductions in reimbursement tied specifically to 340B status.
- Preserve covered entities’ contracts with pharmacies that dispense 340B drugs (contract pharmacy arrangements).
Note: The precise legal prohibitions, definitions (which payors or restrictions are covered), and enforcement mechanisms require review of the enacted bill text.

Who is affected

  • 340B covered entities (eligible hospitals, community health centers, clinics) and the patients they serve.
  • Pharmacies that participate as contract pharmacies under 340B arrangements.
  • Insurers, Medicaid/CHIP managed care plans, and PBMs operating in the state (if the bill addresses their conduct).
  • Potential downstream impacts on drug reimbursement, plan design, and provider‑insurer contracting.

Procedural / timeline highlights

  • Introduced in Senate Health & Human Services: 2025‑01‑22
  • Passed Senate (third reading): 2025‑03‑26 (with some amendments on second reading)
  • House Health & Human Services consideration: March–May 2025
  • House passed third reading (no amendments): 2025‑05‑06
  • Sent to Governor: 2025‑05‑15
  • Governor signed into law: 2025‑05‑30

Fiscal, legal, and implementation considerations

  • Potential fiscal impacts could include changes to insurer reimbursement practices, provider revenues, and administrative costs for payors and PBMs; specific fiscal effects depend on statutory detail and any state cost studies.
  • Federal preemption issues may arise if state rules conflict with federal 340B regulations or private contracts; the bill’s enforcement provisions determine administrative oversight.

Where to read the enacted bill

For precise statutory language, effective date, and enforcement provisions, consult the enacted bill text on the Colorado General Assembly website or the Secretary of State’s repository for 2025 session laws.

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

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