JOINT RELEASE: Legislation to Lower the Cost of Health Care and Prescription Drugs Goes Into Effect

New laws to preserve access to affordable prescription medicine through the 340B program, safely donate and dispense certain unused medicine, and reduce barriers to changing dose or frequency of a medication all go into effect on August 6. 

SB25-071, sponsored by Senate President Pro Tempore Dafna Michaelson Jenet, D-Commerce City, and Rep. Matthew Martinez, D-Monte Vista, will ensure prescription drug manufacturers do not impose restrictions on facilities, such as pharmacies and clinics, that utilize the federal 340B Drug Pricing Program, and will require hospitals to include certain information in their annual reports. The new reporting requirements, including the hospitals' reported 340B savings and how they utilized those savings, aim to improve transparency. 

“Colorado families are counting on us to put their health and safety first,” said 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.” 

“This law helps ensure that Coloradans, especially those in rural and underserved communities, receive the prescription drugs they need to lead healthy lives,” said 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.”

SB25-071 aims to preserve access to affordable prescription drugs across Colorado, especially in Colorado’s rural and underserved communities. This law will also help preserve no-cost clinics and vaccines that help keep Coloradans healthy. To improve accountability and ensure 340B savings are passed down to the consumer, this law prohibits hospitals from spending the 340B savings on executive salaries, gifts, lobbying, and advertising.

The 340B Drug Pricing Program is a federal program that requires drug manufacturers participating in Medicaid to provide outpatient drugs to covered hospitals, clinics, or pharmacies at a discount. To qualify for these reduced drug prices, health care facilities must serve a high percentage of low-income patients. In Colorado, an estimated 68 hospitals and 20 federally qualified health centers participate in the 340B program.

SB25-289, sponsored by Senate Assistant Majority Leader Lisa Cutter, D-Jefferson County, and Representatives Kyle Brown, D-Louisville, and Emily Sirota, D-Denver, will allow individuals and institutions to safely donate certain unused medicine to eligible recipients. Recipients can include distributors, pharmacies, clinics, health care providers, and hospitals. They are required to keep records on donors and donated medicine, store donated medicine separately from regular stock, and have it inspected by a licensed pharmacist.

“Every year, the United States spends billions to dispose of unused prescription medicines from nursing homes, assisted living residences, hospices, and jails,” said Cutter. “Additionally, many left-over prescriptions are flushed down the toilet or thrown into the trash, which causes immeasurable harm to our environment and water supply. With this new law, we are creating a program to reduce waste, protect the environment, and help Coloradans access the medication they need.”

“No one should have to go without the medication they need, yet some patients cannot afford their prescriptions,” said Brown. “This law is a win-win because it cuts back on pharmaceutical waste, which can be harmful to our environment, and redirects medication to patients who need it.” 

“From capping the cost of epi-pens to expanding rural health care, we’ve taken important steps in Colorado to lower the cost of health care,” said Sirota. “This law safely redirects certain unused prescription medication to patients who might not be able to afford their prescriptions. SB25-289 saves patients money, reduces waste, prevents environmental contamination and makes health care more accessible.”  

In 2021, 9.7 percent of Colorado residents reported being unable to fill their prescription due to cost. Of those, 40 percent said their health condition worsened as a result. Under this new law, patients in need will have access to free and low-cost donated medicine. The program will exclude opioids, scheduled medications, and medicines that require special storage conditions unless storage conditions can be verified. The creation of this program was extensively researched by a task force created by SB22-098, which included best practices from other states and safety provisions. 

SB25-301, a bipartisan law sponsored by Senator Katie Wallace, D-Longmont, and Rep. Sheila Lieder, D-Littleton, will prohibit insurance companies from imposing prior authorization requirements to adjust the dose or frequency of medication already being used by a patient for a chronic condition. Providers could make such adjustments up to two times without prior authorization. 

“SB25-301 will increase affordable, consistent access to the medication Coloradans with chronic illnesses rely on by allowing a health care provider to adjust the dose of a medication without needing to go through additional, lengthy insurance authorization processes,” said Wallace. “Colorado’s health care providers know what’s best for their patients, not insurance companies. This new law gives providers the flexibility to respond to their patients’ needs without fear of losing insurance coverage for necessary adjustments.”

“Consistent, reliable health care improves patient outcomes,” said Lieder. “Our law breaks down administrative barriers by allowing health care providers to adjust the dose and frequency of certain medications for patients with chronic conditions without preauthorization. By reducing the back-and-forth between insurance companies and providers, Colorado patients can receive the medication they need, when they need it.” 

In 2015, 3.1 million Coloradans had at least one chronic disease. Many chronic diseases may require adjustment of medication doses to effectively treat the illness. This law will reduce administrative burdens and accelerate access to timely, appropriate care.