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Bill

SB 5981

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.

2025-2026 Regular Session Introduced by Emily Alvarado and 11 co-sponsors

Washington bill prevents drug manufacturers from restricting hospital use of 340B discount pricing to expand affordable medication access for low-income patients.

President signed.
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Bill Summary · SB 5981

Legislative bill overview

SB 5981 aims to protect Washington's 340B drug pricing program—a federal initiative that allows hospitals and clinics serving low-income patients to purchase medications at steep discounts—by preventing pharmaceutical manufacturers from imposing restrictions or limitations on how these entities use the program. The bill essentially ensures that safety-net healthcare providers can fully leverage the discounts Congress intended for vulnerable populations.

Why is this important

The 340B program saves safety-net hospitals and clinics millions annually, allowing them to stretch limited resources and serve uninsured and underinsured patients. Pharmaceutical manufacturers have increasingly used contractual restrictions and "mega-agreements" to limit which patients benefit from these discounts, effectively undermining the program's original purpose and reducing care access for low-income communities.

Potential points of contention

  • Manufacturer concerns: Pharmaceutical companies argue these restrictions prevent program abuse and protect their intellectual property; they contend the bill could increase their costs and potentially raise drug prices elsewhere
  • Scope and enforceability: Disagreement over whether Washington state has sufficient authority to regulate manufacturer practices tied to federal programs, and how penalties would be implemented
  • Program definition: Ambiguity about which entities qualify as "safety-net" providers and which manufacturer limitations constitute illegal restrictions versus legitimate business practices

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

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