On May 13, the Rhode Island Senate passed S. 114, a bill that would prohibit pharmaceutical manufacturers from restricting 340B contract pharmacy arrangements and block PBMs and insurers from reimbursing 340B providers at lower rates than their non-340B counterparts. The legislation passed by a vote of 33-0, marking the second consecutive year the state Senate has unanimously supported this policy.

The bill now heads to the House—where its future remains uncertain.

What’s in the Bill (S. 114)?

S. 114 includes two major provisions:

• Prohibits drugmakers from imposing restrictions on covered entities’ use of contract pharmacies.
• Prevents pharmacy benefit managers (PBMs) and insurers from discriminating against 340B providersthrough reduced reimbursement rates.

The legislation is a direct response to ongoing manufacturer-imposed restrictions on 340B contract pharmacy access and payer practices that financially penalize covered entities.

Last Year’s Bill Died in the House

This isn’t Rhode Island’s first attempt. In 2024, the Senate passed nearly identical legislation—only to see it stall in the House after significant opposition from the pharmaceutical industry.

Now in 2025, the companion House bill (introduced Feb. 26) is once again facing delays, having been held “for further study” by the House Health and Human Services Committee on April 10. While this move often signals legislative death, the Senate version of the bill is still eligible for full House consideration.

Rep. Jon Brien (I), who leads the House push for contract pharmacy protections, has vowed to build broader support this session. “We’re going to come back stronger next year. We’re going to come back with more advocates,” he told 340B Report after the bill failed in 2024.

A Broader State Trend

Rhode Island is far from alone. In 2025 alone:

• Six states have already enacted contract pharmacy access laws.
• Nearly 30 states have introduced similar bills.
• States like Colorado, Hawaii, and Oklahoma have legislation pending gubernatorial approval.
• Many of these bills, like Vermont’s H. 266, are now combining contract pharmacy protections with hospital reporting mandates—a sign of evolving legislative priorities.

This rising wave of state-level action underscores the importance of maintaining operational readiness and staying informed across jurisdictions.

RxTrail’s Take: Prepare Locally, Navigate Nationally

Whether legislation passes or stalls, covered entities in Rhode Island (and across the country) should prepare by:

• Evaluating contract pharmacy networks for efficiency and compliance risk
• Reviewing PBM reimbursement trends
• Monitoring state legislative sessions for ongoing movement

At RxTrail, we help providers decode these policy shifts, manage TPA systems, and maintain audit readiness—no matter how the legislative landscape evolves.

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