Bill > H4494

This bill aims to protect hospitals and pharmacies participating in the 340B drug discount program by prohibiting pharmacy benefit managers (PBMs) from discriminating against them. The 340B program, established under federal law, allows certain healthcare providers serving vulnerable populations to purchase prescription drugs at significantly reduced prices. Under this proposed legislation, PBMs would be prohibited from seven specific discriminatory practices: (1) reimbursing 340B entities at lower rates compared to non-340B entities, (2) imposing additional fees or charge-backs based on 340B participation, (3) restricting network participation due to 340B status, (4) mandating specific pharmacy contracts, (5) requiring special modifiers to identify 340B drugs (except for Medicaid claims), (6) imposing additional coverage limitations or financial penalties on patients obtaining drugs from 340B entities, and (7) interfering with patients' rights to choose 340B entities by using inducements or financial incentives. The bill seeks to ensure fair treatment of 340B covered entities and protect patient choice in healthcare services, ultimately aiming to maintain the original intent of the 340B program in providing affordable medications to underserved communities.

Health and Social Services

Joint Committee on Financial Services (Joint)

https://malegislature.gov/Bills/194/H4494