The 2024 state legislative session saw a steady increase in state policies related to the 340B Drug Pricing Program. As the legislative session comes to an end, states are enacting laws related to contract pharmacy protections, discriminatory payer practices, and reporting requirements for 340B providers.
Contract Pharmacy Protections
After the U.S. 8th Circuit Court of Appeals upheld Arkansas’ 340B Drug Pricing Nondiscrimination Act against a constitutional challenge from the Pharmaceutical Research and Manufacturers of America, an increasing number of states have passed or introduced legislation prohibiting drug manufacturers from restricting 340B drug access to covered entities and their contract pharmacies in the state.
Kansas, Maryland, and Mississippi are the latest states to enact a 340B contract pharmacy access law, joining Arkansas, Louisiana, and West Virginia. Missouri‘s contract pharmacy protection legislation awaits signature from Gov. Mike Parson (R). In Virginia, Gov. Glenn Youngkin (R) vetoed legislation on this matter.
Prohibitions on Pharmacy Benefit Manager Discrimination
Almost 30 states have enacted legislation to protect 340B providers from discriminatory pharmacy benefit manager (PBM) practices.
Oregon became the latest state to enact such legislation in April 2024. Similar to other state legislation, the law restricts insurers, third party administrators, and other third-party payers from engaging in certain behaviors, including
- Reimbursing 340B covered entities or their contract pharmacies at a lower rate than non-340B entities.
- Charging fees to 340B covered entities or their contract pharmacies that are not charged to non-340B entities.
- Imposing provisions that interfere with a person’s choice to receive 340B drugs from a covered entity or contract pharmacy.
- Imposing administrative requirements specific to 340B covered entities or contract pharmacies.
340B Covered Entity Reporting
State legislators in Indiana and Connecticut introduced 340B provider reporting bills during the legislation session. Minnesota, Maine, and Washington have currently implemented reporting requirements for 340B providers.
America’s Essential Hospitals continues to track state policy 340B developments and previously published a State Snapshot summarizing 340B state policy to combat discriminatory payer practices.
Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.