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LB 168

Adopt the 340B Contract Pharmacy Protection Act

109th Legislature (2025-2026) Introduced by Tom Brandt and 3 co-sponsors

Nebraska LB 168 shields 340B contract pharmacies by barring manufacturers, their agents, and 3PLs from denying or conditioning delivery of 340B drugs to 340B-authorized locations.

Approved by Governor on April 9, 2025
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Bill Summary · LB 168

Summary — LB 168: 340B Contract Pharmacy Protection Act

Status: Approved by Governor April 9, 2025 (effective on signature due to emergency clause)
Introduced: January 13, 2025
Primary sponsor: Sen. Brian Hardin; cosponsors Sen. Fredrickson, Sen. Brandt, Sen. Conrad
Committee: Banking, Commerce and Insurance — advanced with amendment AM225

Purpose / Intent

LB 168 (the "340B Contract Pharmacy Protection Act") is intended to protect covered health care providers participating in the federal 340B drug discount program from manufacturer actions that would interfere with their use of contract pharmacies. The bill prohibits certain manufacturer-related entities from blocking or conditioning the sale or delivery of 340B-priced drugs to locations authorized by a 340B entity.

Key provisions

  • Definitions:
    • "340B drug" and "340B entity" are defined by reference to 42 U.S.C. §256b as they existed Jan 1, 2025.
    • "Manufacturer" adopts the meaning used in Neb. Rev. Stat. §71-7438.
  • Prohibitions (Sec. 3):
    • Manufacturers, their agents or affiliates, and third‑party logistics providers (3PLs) shall not, directly or indirectly, deny, restrict, or prohibit acquisition or delivery of 340B drugs to any location authorized by a 340B entity, unless federal law prohibits receipt.
    • Those same parties shall not require a 340B entity to submit data (e.g., claims, utilization, encounter, medical, purchasing, or other data) as a condition for allowing acquisition or delivery of 340B drugs, unless such data submission is required by federal law.
  • Enforcement:
    • The Nebraska Attorney General or any county attorney may bring actions in the name of the state for injunctions or other relief to prevent or restrain violations.
  • Other:
    • A compatibility clause specifies the Act shall not be construed to conflict with federal law or other Nebraska law that is compatible with federal law.
    • Severability clause.
    • Emergency clause: the Act took effect upon approval.

Notable amendment and scope

  • Committee Amendment AM225 removed language that would have restricted drug distributors. The enacted language therefore targets manufacturers (and their agents/affiliates) and third‑party logistics providers — not distributors.

Who is affected

  • Beneficiaries: 340B-covered entities (e.g., certain hospitals, community health centers) and their contract pharmacies — protections aim to preserve access to discounted drugs through contracted locations.
  • Restricted parties: drug manufacturers, their agents/affiliates, and third‑party logistics providers (subject to federal law limits).
  • Potentially involved state actors: Attorney General and county attorneys (enforcement).

Procedural timeline / outcome

  • Advanced from committee with AM225 (Feb 4, 2025 hearing).
  • Adopted on Final Reading with emergency clause (Final passage recorded Mar–Apr 2025).
  • Presented to and approved by Governor on April 9, 2025; effective upon approval.

Stakeholder positions (committee hearing)

  • Proponents included hospitals, rural health associations, health centers, pharmacies, and associations representing Nebraska providers.
  • Opponents included testimony from Healthcare Distribution Alliance and PhRMA.
  • Fiscal notes were filed (dates in Feb and Mar 2025); bill text does not specify state fiscal impact in the summary provided.

This law creates a state-level protection for 340B contract pharmacy arrangements while preserving conformity with applicable federal law.

Compiled from official sources — confirm details with the bill’s official record.

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