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Session of 2026
HOUSE BILL No. 2550
By Committee on Insurance
Requested by Representative Sutton
1-27
AN ACT concerning health and healthcare; relating to certain 340B
entities under the federal 340B drug pricing program; requiring such
entities to annually report to the Kansas department of insurance on
certain costs, savings and payments made under such program;
requiring the Kansas department of insurance to publish such reports on
the department's website; authorizing the commissioner of insurance to
adopt rules and regulations necessary to effectuate and administer the
provisions of this act.
Be it enacted by the Legislature of the State of Kansas:
Section 1. As used in this act:
(a) "Department" means the Kansas department of insurance.
(b) "Commissioner" means the commissioner of insurance.
(c) "Hospital" means a hospital as defined in K.S.A. 65-450, and
amendments thereto, that is a 340B entity. "Hospital" includes rural
hospitals licensed under K.S.A. 65-484, and amendments thereto, that are
340B entities.
(d) "340B contract pharmacy" means a pharmacy that has a contract
with a 340B entity to receive and dispense 340B drugs to such 340B
entity's patients on behalf of such 340B entity.
(e) "340B drug" means a drug that is purchased or eligible for
purchase under section 340B of the federal public health service act, 42
U.S.C. § 256b(a)(3), as in effect on July 1, 2026.
(f) "340B entity" means an entity participating in the federal 340B
drug pricing program, as described in 42 U.S.C. § 256b, as in effect on
July 1, 2026, including such entity's pharmacy, or any pharmacy
contracted with the participating entity to dispense drugs purchased
through the federal 340B drug discount program.
(g) "340B program" means the federal drug pricing program under
section 340B of the federal public health service act, 42 U.S.C. § 256b, as
in effect on July 1, 2026.
Sec. 2. (a) On and after January 1, 2027, each hospital participating in
the 340B program shall provide an annual report to the department. Each
hospital shall report in a form and manner prescribed by the commissioner,
and include, at a minimum:
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(1) A description of how the hospital uses savings from participation
in the 340B program to benefit such hospital's community through
programs and services funded in whole or in part by savings from the
340B program, including services that support community access to care
that the hospital could not continue without savings from the 340B
program;
(2) the annual estimated savings from the 340B program to the
hospital, comparing the acquisition price of drugs under the 340B program
to group purchasing organization pricing. If group purchasing organization
pricing is not available for a drug under the 340B program, the acquisition
price for that drug shall be compared to a price from another pricing
source, as prescribed by the commissioner;
(3) a comparison of the hospital's estimated savings under the 340B
program to the hospital's total drug expenditures, including examples of
the hospital's most frequently purchased drugs under the 340B program;
and
(4) a description of the hospital's internal review and oversight of the
340B program that satisfies the federal department of health and human
services, health resources and services administration's program rules and
guidance for compliance.
(b) (1) In addition to the requirements in subsection (a), commencing
on January 1, 2027, each hospital shall provide an annual report to the
department. The department shall post such report on the department's
publicly accessible website. Each hospital shall report, in a form and
manner prescribed by the commissioner, at a minimum, the:
(A) Hospital's national provider identification number;
(B) name of the hospital;
(C) address of the hospital for the purpose of accepting service of
process;
(D) classification of the hospital;
(E) aggregated acquisition cost for the prescription drugs obtained
under the 340B program;
(F) aggregated payment amount received for the prescription drugs
obtained under the 340B program and dispensed to patients;
(G) number of pricing units dispensed or administered for
prescription drugs described in subparagraph (F);
(H) aggregated payments made:
(i) To 340B contract pharmacies to dispense 340B drugs;
(ii) to any other entity that is not the 340B entity nor a 340B contract
pharmacy for managing any aspect of the hospital's 340B program; and
(iii) for all other expenses related to administering the 340B program;
and
(I) number of claims for prescription drugs described in subparagraph
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(H).
(2)(A) The information required under this subsection shall be
reported by payor type, as required by the commissioner.
(B) The information required under subparagraphs (E) through (G)
shall also be reported at the national drug code level for the 50 most
frequently dispensed prescription drugs by the hospital under the 340B
program. The information shall include all physician-administered and
physician-dispensed prescription drugs.
(c) The department shall produce and post on the department's
publicly accessible website a report that includes a summary of the
aggregate information received from hospitals required to report under
subsection (b).
(d) The commissioner shall adopt all rules and regulations necessary
to implement and administer the provisions of this act. Such rules and
regulations shall be adopted not later than January 1, 2027.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
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