WSHA and its members are supporting the Washington State Attorney General’s Office (AGO) in its defense of Engrossed Second Substitute Senate Bill 5981, passed during the 2026 state legislative session. The law stops drug manufacturers from restricting or denying nonprofit hospitals and clinics access to 340B drug discounts and prohibits them from requiring the facilities to submit claims or other data in order to receive medications. 

The bill was a hard-fought piece of legislation. Drugmakers blanketed Olympia with lobbyists and it took significant advocacy by hospital and health system leaders to make the law’s passage and enactment possible. WSHA, alongside federally qualified community health centers, tribal members, HIV/AIDs clinics, and other covered entities all supported the legislation. The bill’s effective date is June 11, 2026.   

Immediately following Governor Ferguson’s signing the bill two drug manufacturers, AbbVie and Novartis, sued to block its implementation. Additional manufacturers and PhRMA have subsequently joined. Pharmaceutical company lawsuits against state 340B laws have been a trend around the country, with state’s winning in the majority of cases. 

In a challenging development, the U.S. Department of Justice filed a statement of interest in the case on the side of the manufacturers stating that the state exceeded its authority in passing this law and that federal law preempts it. While preemption has been argued in other cases, the involvement of the DOJ through a statement of interest is a new development.   

Three WSHA member hospitals have stepped up to provide declarations in support of the AGO briefing. WSHA is working with the American Hospital Association to file an amicus brief in support of the state. WSHA staff will provide updates as the case continues to develop. 

Sincerely, 

Taya Briley
WSHA Executive Vice President & General Counsel
[email protected]