A key WSHA policy priority protecting the 340B program and contract pharmacy arrangements was signed into law during the 2026 legislative session (E2SSB 5981) and has now been upheld in court. Immediately after Governor Ferguson signed the bill, drug manufacturers filed lawsuits against it.
As part of the lawsuit, AbbVie, Novartis, and PhRMA sought a preliminary injunction to prohibit the law from going into effect. WSHA is pleased to share that on June 9, US District Court denied the plaintiffs’ motion for a preliminary injunction. This means E2SSB 5981 is effective beginning June 11. The plaintiffs have filed an appeal, but for now drug manufacturers are prohibited from interfering with drug distribution to Washington 340B covered entities and their contract pharmacies. To provide further support of our state law, WSHA and the American Hospital Association partnered on an amicus brief providing legal analysis on federal Supremacy Clause issues that were central to the case.
WSHA members were instrumental in advancing the bill throughout legislative session, and in providing declarations to the AGO for use in the court proceedings. These declarations highlighted how safety-net providers utilize the 340B program to provide a wide array of community benefits, from a low-income dental clinic and free or discounted medications to maintaining service lines like rural obstetrical services. During the hearing and in the judge’s final order they cited these declarations.
To provide further support of our state law, WSHA and the American Hospital Association partnered on an amicus brief providing legal analysis on federal Supremacy Clause issues that were central to the case.
WSHA will be distributing a bulletin outlining the law in detail within the coming days. We will also continue to provide updates on the legal proceedings.
Sincerely,
Taya Briley
WSHA Executive Vice President & General Counsel
[email protected]