Requires covered entities report to the department of health regarding certain 340B drug discounts and what percentage of patients benefit from such discounts.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6987
SPONSOR: Septimo TITLE OF BILL:
An act to amend the public health law, in relation to requiring trans-
parency requirements for certain 340B drugs
PURPOSE OR GENERAL IDEA OF BILL:
An act to amend the public health law, in relation to requiring 340B
covered entities to report basic data points about their participation
in the 340B program.
SUMMARY OF PROVISIONS:
Section one adds a new section to 280-d to contain accountability to
safeguard benefits for vulnerable patients. It contains new terms with
the following meanings:"340B drug" which shall mean a covered outpatient
drug that has been subject to any offer for reduced prices by a manufac-
turer pursuant and is purchased by a covered entity."340B profits" shall
mean the difference between aggregated payments received from insurers,
payors, or self-paying patients for all 340B drugs and the aggregate
acquisition cost pay for all 340B drugs. The "340B program" shall mean
the federal drug pricing program described in "Charity care" shall have
the same meaning as ascribed to such term as is found in line twenty-
three of the S-10 Medicare cost worksheet or any successor form.
"Contract pharmacy" shall mean a pharmacy with which a covered entity
has contracted to dispense 340B drugs on behalf of such covered entity
to patients of such covered entity, whether distributed in person, via
mail, or by other means."Covered entity" shall have the same meaning
"Low-income patient" shall mean a patient of a covered entity with a
family income below two hundred•percent of the federal poverty guide-
lines.
Section 2 highlights how beginning April 1st, 2026 each covered entity
shall report to the department with respect to such covered entity and
"10744-01-5" separately for each offsite outpatient facility associated
with such covered entity, in a form and manner as determined by the
department.
JUSTIFICATION:
The 340B program was designed to provide lower-cost medications to
covered entities serving vulnerable populations. By mandating reporting
of 340B profit, this bill ensures that covered entities use the
program's benefits to directly support patients who are of low income
rather than generating excessive revenue. Requiring accountability
prevents misuse and ensures funds are reinvested into patient care,
rather than put into other institutional expenses.
The reporting requirements beginning in April 2026 will require covered
entities to disclose financial details about 340.E drug purchases and
reimbursements. This prevents potential spikes in prices or misuse of
program savings and ensures that benefits are reaching low-income
patients who rely on discounted medications. Contract pharmacies often
dispense 340B drugs but may charge insured patients market rates, allow-
ing for large profit margins, increasing oversight within pharmacies
ensures that patients receiving 340B drugs especially the uninsured and
underinsured are benefiting from the intended cost savings.
PRIOR LEGISLATIVE HISTORY:
None.
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
The act shall take effect immediately after it shall have become a law.
