Prohibit Restrictions on 340B Drugs

The act also prohibits a manufacturer from directly or indirectly requiring a covered entity, a pharmacy contracted with a covered entity, or any other location authorized to receive 340B drugs by a covered entity to submit any health information, claims or utilization data, or other specified data that does not relate to a claim submitted to certain federal health care programs, unless the data is voluntarily furnished or required to be furnished under federal law.

The act defines "340B savings" as the difference between the aggregated market rate costs and the aggregated acquisition costs for 340 B drugs. Certain hospital covered entities are prohibited from using 340B savings for certain purposes.

A violation of the prohibitions in the act is an unfair or deceptive trade practice under the "Colorado Consumer Protection Act" (protection act), and the violator is subject to the enforcement provisions and penalties contained in the protection act. In addition, a person regulated by the state board of pharmacy (pharmacy board) that violates the provisions of the protection act may be subject to discipline by the pharmacy board against the person's license, certification, or registration, as well as other penalties.

The act requires certain hospital covered entities to annually report to the department of health care policy and financing certain information concerning 340B savings and costs relating to providing charity care. (Note: This summary applies to this bill as enacted.)