340B Drug Pricing Program Protections

State Bills: Washington

Published March 31st, 2026

Detected April 1st, 2026

Summary

Washington State enacted SB 5981 to protect the 340B drug pricing program, which enables safety net healthcare providers to purchase outpatient drugs at discounted prices. The law prohibits pharmaceutical manufacturers from imposing restrictions on covered entities' participation in the program, including limitations on contract pharmacy arrangements and inventory management practices. This applies to hospitals, federally qualified health centers, and other covered entities serving vulnerable populations in Washington.

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What changed

Washington State passed SB 5981 (Chapter 227 Laws of 2026) establishing protections for the 340B drug pricing program, which allows safety net healthcare providers to obtain outpatient drugs at reduced costs. The legislation specifically addresses and prohibits manufacturer practices that limit covered entity access to 340B pricing, including restrictions on contract pharmacy arrangements and sub-340B pricing requirements. The bill codifies safeguards for healthcare safety net providers that depend on 340B savings to fund uncompensated care and expanded services.

Healthcare providers participating in the 340B program should review current manufacturer contracts and contract pharmacy arrangements to ensure compliance with the new state protections. Covered entities should document their current 340B program operations and any manufacturer restrictions they have encountered, as the law provides enforcement mechanisms against prohibited manufacturer conduct. Pharmaceutical manufacturers operating in Washington must assess whether their policies and practices regarding 340B entities comply with the new state requirements.

What to do next

Review current 340B program arrangements with manufacturers for any prohibited restrictions
Ensure contract pharmacy arrangements comply with new state protections
Document any manufacturer limitations encountered to support enforcement actions if needed

Source document (simplified)

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SB 5981 - 2025-26

Revised for 2nd substitute: Concerning the 340B drug pricing program.
Original: Protecting patient access to discounted medications and health care services through Washington's health care safety net by preventing manufacturer limitations on the 340B drug pricing program. Sponsors: Cleveland, Slatter, Harris, Bateman, Alvarado, Chapman, Dhingra, Frame, Hasegawa, Liias, Pedersen, Saldaña, Valdez Companion bill: HB 2145

Bill status-at-a-glance

As of Tuesday, March 31, 2026 10:52 PM

Current version:

Engrossed 2nd substitute - E2SSB 5981 (View 1st engrossed)

Current status:

C 227 L 26

Where is it in the process?

Bill status-at-a-glance

As of Tuesday, March 31, 2026 10:52 PM

Current version:

Engrossed 2nd substitute - E2SSB 5981 (View 1st engrossed)

Current status:

C 227 L 26

Where is it in the process?

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Bill history

View all roll calls on this bill

2026 Regular Session

In the Senate

Jan 5 Prefiled for introduction. Jan 12 First reading, referred to Health & Long-Term Care. (View original bill) Jan 16 Public hearing in the Senate Committee on Health & Long-Term Care at 8:00 AM. (Committee materials) Jan 27 Executive action taken in the Senate Committee on Health & Long-Term Care at 10:30 AM. (Committee materials) HLTC - Majority; 1st substitute bill be substituted, do pass. (View 1st substitute) (Majority report) And refer to Ways & Means. Minority; do not pass. (Minority report) Jan 28 Referred to Ways & Means. Feb 5 Public hearing in the Senate Committee on Ways & Means at 1:30 PM. (Committee materials) Feb 9 Executive action taken in the Senate Committee on Ways & Means at 10:30 AM. (Committee materials) WM - Majority; 2nd substitute bill be substituted, do pass. (View 2nd substitute) (Majority report) Minority; do not pass. (Minority report) Minority; without recommendation. (Minority report) Passed to Rules Committee for second reading. Feb 10 Placed on second reading by Rules Committee. Feb 13 2nd substitute bill substituted (WM 26). (View 2nd substitute) Floor amendment(s) adopted. Rules suspended. Placed on Third Reading. Third reading, passed; yeas, 30; nays, 18; absent, 0; excused, 1. (View 1st engrossed) (View this roll call)

In the House

Feb 17 First reading, referred to Health Care & Wellness. Feb 20 Public hearing in the House Committee on Health Care & Wellness at 8:00 AM. (Committee materials) Feb 25 Executive action taken in the House Committee on Health Care & Wellness at 1:30 PM. (Committee materials) HCW - Majority; do pass with amendment(s). (Majority report) Minority; do not pass. (Minority report) Minority; without recommendation. (Minority report) Referred to Appropriations. Feb 27 Public hearing in the House Committee on Appropriations at 10:30 AM. (Committee materials) Mar 2 Executive action taken in the House Committee on Appropriations at 10:30 AM. (Committee materials) APP - Majority; do pass with amendment(s) by Health Care & Wellness. (Majority report) Minority; do not pass. (Minority report) Minority; without recommendation. (Minority report) Referred to Rules 2 Review. Mar 4 Rules Committee relieved of further consideration. Placed on second reading. Mar 6 Committee amendment(s) adopted with no other amendments. Rules suspended. Placed on Third Reading. Third reading, passed; yeas, 67; nays, 30; absent, 0; excused, 1. (View this roll call)

In the Senate

Mar 9 Senate concurred in House amendments. Passed final passage; yeas, 30; nays, 19; absent, 0; excused, 0. (View this roll call) Mar 10 President signed.

In the House

Mar 11 Speaker signed.

Other than legislative action

Mar 12 Delivered to Governor. (View bill as passed legislature) Mar 25 Governor signed. Chapter 227, 2026 Laws. (View session law) Effective date 6/11/2026.