In this episode, the Inside 340B Report team dives into a flurry of activity at the state and federal levels. Publisher and CEO Ted Slafsky and Associate Editor/Senior Writers Shannon Young and Will Newton break down the unprecedented wave of state-level 340B contract pharmacy access and provider reporting bills, explore key federal movements, including the latest on the bipartisan U.S. Senate working group behind the SUSTAIN 340B Act, and provide an update on 340B rebate litigation.
Key Topics Covered:
State Legislative Activity Heats Up
The team discusses the recent surge in legislative action on state 340B bills as more than 25 states have introduced contract pharmacy access bills in 2025. South Dakota and Utah recently enacted contract pharmacy laws in 2025, joining eight other states that passed similar bills in previous years, while bills in New Mexico and North Dakota are awaiting action from their state governors. Will also highlights several state bills that would place a range of reporting requirements—and in some cases significant restrictions—on 340B providers.
Federal Legislative Developments and Bipartisan Efforts
Shannon provides updates on the latest developments on the 340B front in Washington, D.C., including the new members of the bipartisan group of six senators working on 340B overhaul legislation known as the SUSTAIN 340B Act. She and Ted also highlight other federal bills that could resurface this session, including the provider-supported 340B PATIENTS Act and drug industry-backed 340B ACCESS Act. The team also provides an update on Mehmet Oz’s nomination to lead the Centers for Medicare & Medicaid Services (CMS), focusing on a new Washington Post story that highlighted 340B Report’s previous reporting on his undisclosed ties to ZorroRx, a health benefits company that partners with 340B hospitals. Despite facing new ethics concerns, Oz has not drawn much scrutiny from lawmakers during the confirmation process over his 340B ties or stance on the program—a shift from previous nominees.
Rebate Litigation Developments
Will explains recent developments in ongoing lawsuits that pharmaceutical giants, like Johnson & Johnson and Eli Lilly, have filed against the federal Health Resources and Services Administration (HRSA) in their attempts to unilaterally impose 340B rebate models. Notably, in a series of recent court filings, President Donald Trump’s (R) administration has chosen to continue to defend HRSA’s long-standing position that drugmakers cannot implement 340B rebate models without explicit agency approval, offering some relief to the 340B provider community.
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