Sen. Hayden: Bill lets hospitals to profit from marking up drug prices

By State Senator Cedric Hayden
May 28, 2025

Today, Senate Democrats passed House Bill 2385, which prevents accountability and transparency in 340B hospitals. The 340B program is a federal initiative designed to improve access to essential medications for low-income and uninsured patients. It requires pharmaceutical manufacturers to offer steep discounts on drugs to hospitals serving low-income patients.

In recent decades, this $66 billion program has expanded dramatically—by 5000% over the past ten years—without sufficient federal oversight. As a result, hospitals have been able to charge patients and insurance carriers inflated prices for medications. Through a loophole, hospitals are profiting by marking up drugs they receive at significant discounts, and the savings are rarely benefiting the patients who need it most.

“We can’t allow hospitals to continue to profit off patients when their costs are rising,” said Senator Cedric Hayden (R-Fall Creek), vice chair of the Senate Committee on Health Care. “Paying $5 for a pill that Amazon will deliver for 1-cent to their door is unconscionable. We need transparency in pricing and the savings needs to go to the patient directly.”

HB 2385 continues to allow hospitals to overcharge patients for medications and prevents any accountability in the relationship between drug manufacturers and hospitals. This means there’s no way to determine whether these drugs are being properly discounted or reaching the impoverished communities they are meant to help.

In response, Senate Republicans proposed a minority report to halt hospitals from unfairly profiting off patient illness, aiming to lower patient costs and increase transparency. It was struck down by Democrats on a party-line vote.

HB 2385 now moves to the House of Representatives for final adoption before heading to the Governor’s desk.