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Bill

Bill

SB 589

TO CREATE THE 340B PROGRAM TRANSPARENCY ACT; AND TO AMEND THE LAW CONCERNING TRANSPARENCY AND ACCOUNTABILITY FOR CERTAIN 340B-COVERED ENTITIES.

2025 Regular Session Introduced by Clint Penzo

Bill would have required 340B drug program participants to disclose how they use federal medication discounts through enhanced transparency and accountability reporting requirements.

Died in Senate Committee at Sine Die adjournment.
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Bill Summary · SB 589

Legislative bill overview

SB 589 would have established transparency and accountability requirements for entities participating in the 340B drug pricing program, a federal program that allows certain healthcare providers and organizations to purchase medications at discounted prices. The bill specifically aimed to increase public visibility into how these entities use their 340B benefits and manage their drug procurement practices.

Why is this important

The 340B program distributes billions of dollars in drug discounts annually, but has faced criticism for lack of transparency regarding how participating entities use these savings. Greater accountability measures could help ensure these discounts benefit intended patient populations rather than being used for institutional profits or unrelated purposes, while also addressing concerns from pharmaceutical manufacturers about program integrity.

Potential points of contention

  • Program expansion vs. oversight: Pharmaceutical companies argue the program lacks controls; healthcare providers counter that transparency requirements could reduce program participation and limit discounts reaching vulnerable patients
  • Definitional scope: Disagreement over which "covered entities" should face increased reporting requirements and what specific data points constitute meaningful transparency
  • Compliance burden: Small rural hospitals and nonprofits may face disproportionate administrative costs implementing new transparency measures compared to larger health systems with existing compliance infrastructure

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

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