A Northern Kentucky lawmaker has proposed a new version of a bill meant to protect a program that generates income for charity health care that some Kentucky hospitals say is essential for their survival.
“This is a very critical program for our hospitals and access to care in rural communities,” Nancy Galvagni, president of the Kentucky Hospital Association, told a legislative committee Feb. 5, referring to the federal 340B Drug Pricing Program.
But Sen. Gex Williams, R-Verona, has filed an amendment to Senate Bill 14 to replace it with a measure he said is critical to getting more information about how much money from the program, subsidized by the pharmaceutical industry, is generated and spent before further legislative action.
“It tries to collect some data so we can better understand what we’re dealing with,” said Williams, whose legislative page describes him as an engineer and technology consultant. “The data we collect will enable us to better ascertain the fiscal impact on the state of Kentucky.”
Sen. Gex Williams
The program, which generates income for charity care from deep discounts drug manufacturers provide hospitals and other entities, such as health clinics, has come under fire from consumer advocates and the pharmaceutical industry for what they say is its rapid growth and lack of oversight.
“When hospitals, other covered entities and their contract pharmacies have free rein to mark up medicines, patients, employers and taxpayers across Kentucky pay the price,” Reid Porter, a spokesman for Pharmaceutical Research and Manufacturers of America, or PhRMA, said in an emailed statement. “Transparency and accountability are needed to ensure 340B is being used appropriately.”
PhRMA, along with other groups including the Kentucky Association of Manufacturers, oppose SB 14 as filed by Sen. Stephen Meredith, R-Leitchfield and a former hospital CEO.
Meredith did not respond to a request for comment about the changes Williams proposes to SB 14. He has argued his SB14 would preserve an essential income stream especially important to rural hospitals in Kentucky.
At the Feb. 5 meeting of the Senate Health Services Committee he chairs, Meredith said his bill simply mirrors legislation passed in a handful of other states that prevents pharmaceutical companies from restricting drugs sold in Kentucky at discounts of up to 50%. He said some companies have begun imposing such restrictions that limit revenue to Kentucky providers.
“Why should we not be allowed to have this funding when other states do?” asked Meredith, who said it brings in about $122 million a year for Kentucky hospitals, clinics and other entities that serve low-income patients.
The Kentucky Hospital Association, which supports Meredith’s bill, agrees.
While Williams’ proposal may be “intended to be helpful,” it doesn’t account for how the program generates savings for hospitals by requiring manufacturers to provide them drugs “at the same price the drug companies charge their best customers,” said Jim Musser, senior vice-president with the association.
“The savings generated from that discounted price allow the hospitals to put the savings toward stretching scarce resources,” he said.
Several supporters of the bill testified the 340B program is especially helpful for expanding access to costly cancer infusion drugs which can cost tens of thousands of dollars.
Williams said he hadn’t discussed his amendment to SB 14 with Meredith other than to notify him he planned to file it.
“I’m presuming we’ll discuss it in caucus,” Williams said, referring to the meeting of the Republican majority that controls the Senate. He said he doesn’t know when it might be called on the floor for a vote after committee passage Feb. 5.
Williams’ amendment would strip out Meredith’s language from SB 14 and replace it with a bill that would require all hospitals and any affiliated facilities, such as health clinics, to file a detailed annual report with the Cabinet for Health and Family Services about how much money they gain from the program and how they use it.
The bill also would apply to “contract” or outside pharmacies used by those hospitals and clinics which critics say have expanded rapidly to include major drugstore chains and industry middlemen known as pharmacy benefit managers or PBMs.
Williams said the legislature could consider changes to state law after it determines details about how much money the program generates and where it goes.
“I don’t know how we can make a decision … without data,” he said.
Hospital officials who spoke in support of Senate Bill 14 on Feb. 5 include, from left, Angela Portman, CEO of Breckinridge Health; Nancy Galvagni, president of the Kentucky Hospital Association; Don Lloyd, CEO of UK St. Claire Regional Medical Center, and Brian Springate, CEO of Appalachian Regional Healthcare’s Hazard hospital. (Kentucky Lantern photo by Deborah Yetter)
Williams’s proposal does not apply to clinics not affiliated with hospitals such as the state’s system of “safety-net” health clinics authorized by the federal government to provide care for low-income and uninsured patients.
Advocates for the about 30 such clinics across Kentucky had expressed alarm at potential reduction of the funds they say are vital to care they provide.
Molly Lewis, executive director of the Kentucky Primary Care Association, said the 340B program brings in about $19 million a year to the community health clinics, funds she said are essential to caring for patients who can’t pay for services.
“We support Senate Bill 14,” she said, referring to Meredith’s original bill.
Meanwhile, some advocates continue to seek reforms at the federal level since the federal government oversees the program.
Meredith has said he agrees overall change must come from Congress, which is considering proposals to tighten controls and improve oversight of the 340B program. His bill, he said, is meant to protect Kentucky health providers in the meantime.
“I don’t think there’s a person involved in health care that doesn’t realize there need to be some changes, some adjustments to it,” he said at the Feb. 5 hearing. “But that’s not why we’re here today.”
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Kentucky Lantern is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Kentucky Lantern maintains editorial independence. Contact Editor Jamie Lucke for questions: info@kentuckylantern.com.
SUMMARY: The weather forecast includes a tornado watch for far northwestern communities like Jackson and Lawrence counties, effective until 11 PM. Scattered storms have started to develop due to high heat and humidity. The Steamboat Race is about to begin near the Ohio River, with dry conditions so far but some storms may pop up nearby. Temperatures are around 84°F with 50% humidity and a light southwest breeze. Evening storms are expected mainly along I-64 and points north. Wednesday night will quiet down, but Thursday will see scattered storms again, especially in the afternoon. Rain chances continue through Derby week, but mostly in periodic showers with plenty of dry times. The unsettled pattern will likely ease by next week.
SUMMARY: Severe weather is expected to return on Thursday, with a cold front moving through the Ohio Valley and re-energizing the atmosphere, creating conditions for strong to severe storms, including damaging winds, large hail, and isolated tornadoes. All of Central and Eastern Kentucky is under a Level 2 (Slight Risk) for severe weather. The storms will be fueled by gusty southwest winds, pushing temperatures into the low 80s. For Oaks Day (Friday), scattered showers and storms are likely, and the forecast for Derby Day (Saturday) is uncertain, with possible lingering clouds and showers. Temperatures will be cooler, staying in the mid-60s for the weekend.
www.thecentersquare.com – By Dave Mason | The Center Square – (The Center Square – ) 2025-04-29 19:00:00
(The Center Square) – California and Arizona Tuesday joined 22 other states and the District of Columbia to sue the Trump administration to stop cuts in AmeriCorps’ grants and workforce.
The lawsuit objects to the federal government reducing 85% of the workforce for the agency, which promotes national service and volunteer work addressing disaster recovery and other community needs.
According to americorps.gov, the agency enrolls more than 200,000 people each year in community service organizations. AmeriCorps also provides more than $4.8 billion in education awards.
Besides California and Arizona, states filing the suit are Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Massachusetts, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, Wisconsin, Kentucky and Pennsylvania.
President Donald Trump issued an executive order in February directing every federal agency to reduce its staff. Since then, AmeriCorps has placed at least 85% of its workforce on administrative leave immediately and told employees they would be dismissed effective June 24, according to a news release from the Arizona Attorney General’s Office.
The states’ lawsuit contends the Trump administration’s efforts to reduce AmeriCorps and its grants violate the Administrative Procedures Act and the separation of powers under the U.S. Constitution.
California is co-leading the lawsuit against the Trump administration.
“In California, AmeriCorps volunteers build affordable housing, clean up our environment, and address food insecurity in communities across our state,” Attorney General Rob Bonta said in a news release. “California has repeatedly taken action to hold the Trump Administration and DOGE accountable to the law — and we stand prepared to do it again to protect AmeriCorps and the vital services it provides.”
The Arizona Attorney General’s Office said the cuts in AmeriCorps affect grants such as:
$700,000 for Northern Arizona University, Arizona Teacher’s Residency, designed to address teacher shortages.
$308,000 for Area Agency on Aging, Caring Circles, which helps older Arizonans with needs such as transportation to medical appointments, grocery shopping and help with technology.
$495,000 for Vista College Prepartory’s tutoring and teacher support for math and reading for low-income students.
“AmeriCorps represents the best of our nation – providing opportunities for millions of Americans to serve their neighbors and communities and make our country a better place to live,” Arizona Attorney General Kris Mayes said. “By unilaterally gutting this Congressionally authorized agency, Donald Trump and Elon Musk have yet again violated the law and the separation of powers under the U.S. Constitution. Their illegal actions will harm Arizona communities.”
Mayes noted studies show AmeriCorps programs generate more than $34 per every dollar spent in terms of their impact on communities.
“Slashing these programs serves no purpose and is incredibly short-sighted from those claiming to champion efficiency,” she said.
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Centrist
This article reports on a legal action filed by multiple states against the Trump administration over cuts to AmeriCorps, without offering an overt ideological stance. The content outlines the details of the lawsuit, the parties involved, and their claims. The language used is largely factual, describing the positions of the states, particularly California and Arizona, without endorsing one side. While the article highlights the perceived impacts of the cuts and quotes politicians critical of the Trump administration, it refrains from promoting an explicit viewpoint, focusing instead on reporting the legal and administrative actions at hand. The tone remains neutral and provides an equal space to both the states’ concerns and the implications of the lawsuit. It primarily serves as a factual report on the legal challenge, rather than an advocacy piece, and does not adopt a partisan perspective on the issue.
