Bill > HB1242

This bill amends Tennessee law to protect 340B entities, which are healthcare providers participating in a federal drug discount program, by prohibiting drug manufacturers and their affiliates from discriminating against these entities. Starting July 1, 2025, the bill prevents manufacturers from imposing additional requirements on 340B entities, such as demanding extra data submission, restricting drug acquisition, conducting excessive audits, or creating unnecessary credentialing barriers. The legislation also prevents entities contracting with 340B organizations from interfering with their business relationships or drug choices. Violations of these provisions can result in civil penalties of $50,000 per violation, with each drug package potentially constituting a separate violation. The bill defines key terms like "340B drug" and "health information" and specifies that it does not apply to certain state programs like TennCare or CoverKids. The legislation aims to ensure that 340B entities can continue to access discounted drugs and operate without undue restrictions, while still maintaining compliance with federal regulations and other state laws.

Budget and Finance, Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1242&ga=114