Colorado legislation to lower cost of health care and prescription drugs goes into effect

DENVER, Colo. (KRDO) -- New laws will go into effect on Aug. 6 to preserve access to affordable prescription medicine and health care.

General Assembly Democrats (GAD) say that through the 340B program, individuals will be able to safely donate and dispense certain unused medications, reducing barriers to changing the dose or frequency of a medication.

Officials say the legislation will ensure that prescription drug manufacturers do not impose restrictions on facilities, such as pharmacies and clinics, that utilize the federal 340B Drug Pricing Program.

“This law helps ensure that Coloradans, especially those in rural and underserved communities, receive the prescription drugs they need to lead healthy lives,” said Rep. Matthew Martinez “This bipartisan law bars pharmaceutical companies from imposing restrictions on the local pharmacies, clinics, and safety net providers that are dependent on the federal 340B program and serve our rural communities.”

The program will also require hospitals to include certain information in their annual reports, including transparency on savings and how they utilized those savings, officials say.

According to the GAD, the 340B Drug Pricing Federal Program requires drug manufacturers participating in Medicaid to provide outpatient drugs to covered hospitals, clinics, or pharmacies at a discount

In Colorado, an estimated 68 hospitals and 20 federally qualified health centers participate in the 340B program, says the assembly.

“Colorado families are counting on us to put their health and safety first,” said Senator Michaelson Jenet. “This new law will ensure that all Coloradans, especially those who rely on rural hospitals, pharmacies, and providers, don’t lose access to the services they depend on to stay safe and healthy.” 

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