DENVER, COLO. – Jan. 23, 2025 – Colorado hospitals and federally qualified Health Centers (FQHCs) that participate in the federal 340B Drug Pricing Program would be protected from efforts by pharmaceutical manufacturers to weaken the program under legislation introduced yesterday by Senate President Pro Tempore Dafna Michaelson Jenet, Sen. Janice Rich, and Reps. Matthew Martinez and Rick Taggart.

The Colorado 340B Contract Pharmacy Protection Act (Senate Bill 25-071) defends the 340B program, which was created by Congress more than 30 years ago and supports safety net providers in providing life-saving and affordable medications and a broad range of health services to patients throughout Colorado, including:

• Access to low-cost, life-saving prescription drugs
• Health care and financial assistance programs for low-income patients
• Trauma care
• Burn treatment
• Obstetrics
• Behavioral health
• Dental and oral health care
• Opioid use disorder treatment
• Ambulatory care pharmacists
• Direct medication benefits
• Free vaccines
• Connecting families with community-based partners

In recent years, pharmaceutical manufacturers have moved to restrict various aspects of the 340B program, including limiting the number of pharmacies a safety net provider can work with to provide discounted medications for patients. This legislation would restrict the ability of manufacturers to unilaterally impose limits and would protect the 340B program and its participating providers. The bill also heightens transparency by requiring participating providers in Colorado to annually post to their websites details concerning the total benefit received through the program and how it was spent. 

“Colorado’s health care safety net is crucial for the continued health of our community, and the 340B program is a critical component of that infrastructure,” said Senate President Pro Tempore Michaelson Jenet. “With 68 hospitals and 20 FQHCs participating in the program – all of which use 340B program benefits to continue providing access to care for their communities – it is essential that we take steps to protect this program.”

“The 340B program provides benefit to our health care providers and patients with no cost to the state budget or to taxpayers,” said Sen. Janice Rich. “I am proud to bring forward legislation that can protect 340B in our state and ensure health care access and programs can continue.”

Eight states have taken similar action to protect the 340B program, and recent court verdicts have universally sided with 340B providers.

“Colorado’s FQHCs depend on the 340B program to continue to provide comprehensive, whole-person care,” said Polly Anderson, vice president of strategy and financing at the Colorado Community Health Network. “340B is critical to the FQHC mission to provide health care to everyone, regardless of their ability to pay. Reducing the 340B program means that FQHCs will have to reduce services, which will most directly and negatively impact their uninsured and underinsured patients. Protecting 340B means that Colorado will make a stand against for-profit pharmaceutical manufacturers and protect the health care safety net.”

“Protecting the 340B program in Colorado will preserve its numerous benefits of improving care access for patients, managing overall health care costs, and helping to keep local hospitals viable,” said Jeff Tieman, president and CEO, Colorado Hospital Association. “Without it, many patients will struggle getting the affordable medications and critical health services they need, jeopardizing their health and wellbeing. Coloradans cannot afford to see the program weakened.”

For additional information, visit cha.com/issues/340b.

About CHA
CHA is the leading voice of Colorado’s hospital and health system community. Representing more than 100 member hospitals and health systems throughout the state, CHA serves as a trusted, credible, and reliable resource on health issues, hospital data and trends for its members, media, policymakers, and the general public. Through CHA, Colorado’s hospitals and health systems work together in their shared commitment to improve health and health care in Colorado. Learn more at www.cha.com.

About CCHN
The Colorado Community Health Network is the unified voice for Colorado’s 20 federally qualified Community Health Centers (CHCs or FQHCs) and their patients.  CHCs provide a health care home for more than 857,000 of their community members, more than one in seven people in Colorado.  Learn more at cchn.org.

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