Bill > S779

This bill aims to protect 340B drug discount program providers by establishing clear rules for health insurance issuers, pharmacy benefit managers, and third-party payors. The 340B drug discount program allows certain healthcare organizations to purchase prescription drugs at reduced prices to help them serve vulnerable populations. The bill prohibits these entities from discriminating against 340B providers by implementing several key restrictions: they cannot reimburse 340B entities at lower rates than non-340B entities, impose additional fees or administrative burdens, require extra documentation or claim modifications, or prevent patients from choosing to receive drugs from 340B providers. Additionally, the bill prevents manufacturers and distributors from interfering with 340B drug acquisition or delivery, and from requiring unnecessary data submissions. The legislation applies to multiple chapters of Massachusetts law, covering group insurance, health insurance, medical service plans, and health maintenance organizations. Importantly, the bill does not apply to Medicaid fee-for-service reimbursements, ensuring that existing Medicaid drug pricing mechanisms remain unchanged.

Business and Industry

https://malegislature.gov/Bills/194/S779