Tennessee Senate Bill SB1414

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25
• Engrossed: 4/16/25
• Enrolled: 4/22/25
• Passed: 5/5/25
• Chaptered: 5/13/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 47, Chapter 18 and Title 56, relative to 340B entities.

Impact

The implementation of SB1414 is expected to significantly impact how drug manufacturers interact with 340B entities. By preventing the imposition of additional data requirements and oversight mechanisms that could impede accessibility to drugs, the legislation disallows practices that may have previously created hurdles for these entities in providing affordable medication to their communities. The law is anticipated to bolster the integrity of the 340B program, ensuring that the discounts intended for safety-net providers remain effective and unfettered by excessive administrative burdens.

Summary

SB1414 aims to amend the Tennessee Code with respect to 340B entities, which are covered entities participating in a federal drug discount program. The bill prohibits drug manufacturers from imposing additional requirements or limitations on these entities regarding the acquisition and delivery of 340B drugs. Specifically, manufacturers cannot require health information submissions or impose limitations on claims processes unless mandated by federal law. This change is intended to protect 340B entities from undue restrictions by pharmaceutical companies, which could interfere with their operations and access to discounted medications.

Sentiment

The sentiment surrounding SB1414 appears largely supportive among healthcare providers and advocacy groups benefiting from the 340B program. Stakeholders express approval for the bill, emphasizing its potential to enhance patient access to essential medications through supportive measures. Conversely, there may be concerns voiced by some pharmaceutical manufacturers regarding restrictions on their operational flexibilities and the regulatory landscape created through this bill, marking a divide in perspectives.

Contention

Notable points of contention include the balance of power between drug manufacturers and 340B entities. Opponents of such restrictions may argue that limiting manufacturer discretion could result in inefficiencies or increased costs elsewhere within the healthcare system. There is also potential for legal challenges regarding the definitions and parameters established within the bill, particularly concerning how data requirements and claims processes may evolve post-enactment.