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Bill

HB 2385

Relating to restrictions on 340B covered entities; and prescribing an effective date.

2025 Regular Session Introduced by Ed Diehl and 7 co-sponsors

Oregon law restricts 340B covered entities' use of federal drug discount programs, limiting how hospitals can leverage medication discounts for financial or operational purposes.

Chapter 297, (2025 Laws): effective on the 91st day following adjournment sine die.
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Bill Summary · HB 2385

Legislative bill overview

HB 2385 imposes restrictions on how 340B covered entities—hospitals and health systems that receive discounted drug pricing under the federal 340B program—can operate their drug discount programs in Oregon. The bill limits eligibility and usage of these discounts, likely requiring covered entities to demonstrate greater transparency or clinical justification for their participation in the program.

Why is this important

The 340B program allows eligible healthcare providers to purchase medications at significant discounts, theoretically to serve uninsured and low-income patients. However, the program has faced scrutiny for potential abuse, where some entities use discounts primarily for profit rather than patient benefit. This bill addresses concerns that Oregon covered entities may be expanding beyond their intended mission or using discounts inefficiently.

Potential points of contention

  • Pharmacy access and drug costs: Restrictions on 340B entities could reduce their ability to offer discounted medications, potentially raising prices for uninsured patients who rely on these programs
  • Hospital profitability and operations: Covered entities may argue restrictions limit their revenue streams needed to fund charity care and community health programs
  • Implementation complexity: The bill's specific restrictions require clear regulatory guidance; ambiguous language could create compliance uncertainty and litigation risk

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

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