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Bill

HB 2550

Requiring certain 340B entities to report annually to the Kansas department of insurance on certain costs, savings and payments made under the federal 340B drug pricing program.

2025-2026 Regular Session

Kansas bill requires healthcare organizations using federal 340B drug discounts to annually report their costs, savings, and payments to the state insurance department for transparency oversight.

Died in Committee
#healthandhealthcare #insurance #rulesandregulations #administrative
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Bill Summary · HB 2550

Legislative bill overview

HB 2550 requires certain entities participating in the federal 340B drug pricing program to file annual reports with the Kansas Department of Insurance detailing their costs, savings, and payments under the program. The 340B program allows eligible healthcare organizations to purchase medications at discounted prices from manufacturers. This bill creates a state-level transparency and accountability mechanism for how these organizations use their program benefits.

Why is this important

The 340B program generates significant savings for participating entities, but there is limited visibility into how these savings are utilized—whether they fund patient care, operations, or other purposes. Kansas policymakers and insurers have an interest in understanding whether participating organizations are using 340B savings in ways that benefit patients and the healthcare system, or whether savings are being redirected elsewhere. This reporting requirement could inform future policy decisions about program oversight.

Potential points of contention

  • Administrative burden: Hospitals and healthcare organizations may argue that creating new state-level reporting requirements duplicates federal oversight and creates compliance costs without clear benefit
  • Proprietary concerns: Entities may resist disclosing detailed financial information about drug costs and savings, citing competitive sensitivity and concerns about revealing negotiation strategies
  • Scope ambiguity: The bill's language about "certain 340B entities" and which organizations must report could be unclear, potentially creating disputes about who is subject to the requirement

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

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