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Minutes for SB284 - Committee on Financial Institutions and Insurance

Short Title

Enacting the defense of drug delivery act to prohibit manufacturer interference relating to 340B drug distribution.

Minutes Content for Mon, Mar 17, 2025

The hearing on SB 284 was opened by Chairperson Dietrich. Revisor Eileen Ma gave a summary of the bill before the Committee and stood for questions. (Attachment 2)

Senator Murphy spoke in favor of the bill. (Attachment 3) He kept his comments brief to allow others to have more time to speak but wanted to mention how important this bill is for rural Kansas.

Aaron Dunkel of Community Care Network of Kansas also testified as a proponent. (Attachment 4) He shared that the bill would restrict pharmaceutical manufacturers from imposing limits on pharmacies through requirements that reduced patient access and increase administrative burdens with no additional benefit to the patient, provider or the program.

Carrie Lutz of Holton Hospital was in favor of the bill. (Attachment 5) Drug manufacturers are imposing restrictions on who the hospital can contract with for medications which often hurts local pharmacies. Through the savings that have been generated by the 340B program they have been able to provide essential programs to benefit their community.

Derek Pihl of Salina Family Healthcare Center spoke as a proponent. (Attachment 6) He noted that the bill would restore functionality to the 340B program and access to community pharmacies that are so vital in a rural state like Kansas.

Isaac Boone owner of Eureka Pharmacy testified as a proponent. (Attachment 7) He spoke about patient safety being a concern besides local pharmacies having to close their doors. With patients filling prescriptions at multiple pharmacies, a pharmacist can only see part of a patient's medication profile.

Bryant Anderson of PrairieStar Health Center affirmed support for the bill. (Attachment 8) He testified that according to the Health and Human Services, drug manufacturers charge U.S. purchasers of drugs up to 1000% more than purchasers in other countries. The claim by opponents is that the program has expanded exponentially is a problem of their own making.

Additional written only proponent testimony was received from the following:

Katelin Lucariello of PhRMA spoke as an opponent of the bill. (Attachment 26) She stated that the program was designed to serve safety net providers to help underserved communities but due to weak oversight the program has grown without corresponding growth and measures of patient benefit.

Bryan Hannon Healthcare Distribution Alliance via WebEx testified against the bill. (Attachment 27) He requested that the Committee consider an amendment to remove wholesale distributors from the bill as they play no role in setting the price of products. Including distributors in the bill would hold wholesale distributors accountable for the decisions of a manufacturer.

Dr. Kevin Mills of BioKansas & AdAstra BIO testified as an opponent. (Attachment 28) He maintains that the savings the 340B program creates have become increasingly diverted and patients are not realizing the savings intended for them. The expansion that bill will allow would only exacerbate the problems.

William Wilk of the Kansas Chamber spoke against the bill. (Attachment 29) He shared that if this bill becomes law, the estimated increased cost to Kansas commercial employers is $21.6 million and to state and local government plans $4.2 million. He believes that the legislation is an unnecessary mandate on pharmaceutical manufacturers.

Additional written only opponent testimony was received from the following:

  • Kent Kaiser, Ph.D., Secretary/Treasurer, Domestic Policy Caucus (Attachment 30)
  • Yancy Williams, State Government Relations Director, Pfizer (Attachment 31)
  • Justin Hudman, Associate State Director, U.S. State Government Affairs, Amgen, Inc. (Attachment 32)
  • Susan Crain Lewis, President & CEO, Mental Health America of the Heartland (Attachment 33)
  • Alicia Barron, Executive Director, Infusion Access Foundation (Attachment 34)
  • Leah Vukmir, Senior Vice President of State Affairs, National Taxpayers Union (Attachment 35)
  • Jannie Oosthuizen, President, Merck Human Health (Attachment 36)
  • Jeff Ryer, Executive Director, Consumer Action for a Strong Economy (Attachment 37)

Committee discussed and asked questions of the speakers. There was no other testimony.

Chairperson Dietrich closed the hearing on SB 284. Next meeting is scheduled for March 18th.

Meeting adjourned at 10:27 a.m.