Senate panel advances 340B reform bill after debate over state role and oversight

The Senate Health Committee voted to send S.1913 to the Finance Committee after members debated the scope and oversight of state action affecting the federal 340B program.

S.1913, described by the clerk as the "340B prescription drug anti‑discrimination act," would amend the Public Health Law to prohibit pharmaceutical manufacturers, pharmacy benefit managers (PBMs), outsourcing facilities and third‑party logistics providers from certain practices that committee proponents say erode benefits for safety‑net providers. The bill was introduced in the committee without a sponsor present in the room; staff read the title and summary to members.

Senator Gowen asked whether 340B is a federal program and whether the state should address oversight gaps; he urged focusing on transparency rather than broad restrictions. The chair responded that states have legislated in this area, that courts have upheld some state actions, and that the bill targets practices that have harmed community health centers and other safety‑net institutions. The chair emphasized intent to preserve the program’s benefit for federally qualified health centers and similar providers.

After discussion, the motion to report and refer S.1913 to the Finance Committee was moved and seconded; the committee recorded a voice vote and referred the bill for further review.

The bill will now proceed to Finance, where fiscal impacts and oversight questions are likely to receive closer scrutiny.