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H 1274

An Act prohibiting PBMs from discriminating against hospitals and patients participating in the 340B drug discount program

194th Legislature (2025-2026) Introduced by Jamie Eldridge and 3 co-sponsors

H 1274 - An Act prohibiting PBMs from discriminating against hospitals and patients participating in the 340B drug discount program OverviewBill Number: H 1274 Title: An Act prohi

Accompanied a new draft, see H4494
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Bill Summary · H 1274

H 1274 - An Act prohibiting PBMs from discriminating against hospitals and patients participating in the 340B drug discount program

Overview

Bill Number: H 1274
Title: An Act prohibiting PBMs from discriminating against hospitals and patients participating in the 340B drug discount program
Status: Accompanied a new draft, see H4494
Introduced: February 27, 2025

Purpose and Intent

The primary goal of this bill is to prohibit pharmacy benefit managers (PBMs) from discriminating against hospitals and patients participating in the federal 340B drug discount program. The 340B program requires drug manufacturers to provide outpatient drugs at discounted prices to eligible healthcare providers, which helps them stretch scarce federal resources to reach more eligible patients and provide more comprehensive services. This bill aims to ensure that PBMs do not undermine the intent of the 340B program by unfairly targeting or disadvantaging participating providers.

Key Provisions

  • Prohibits PBMs from:
    • Reimbursing 340B-eligible providers at rates lower than non-340B providers for the same drugs
    • Assessing any fee, charge, or other adjustment on 340B drugs
    • Requiring 340B-eligible providers to use their own in-house or affiliated pharmacies
  • Requires PBMs to report annually on their policies and practices related to the 340B program
  • Authorizes the state Attorney General to investigate and enforce compliance with the law

Affected Parties and Impacts

  • 340B-eligible healthcare providers, including certain hospitals, clinics, and pharmacies, would be protected from discriminatory practices by PBMs
  • Patients receiving care at 340B-participating facilities would benefit from the continued availability of discounted drugs and expanded services
  • PBMs would be required to adjust their business practices to comply with the new non-discrimination requirements

Procedural and Timeline Considerations

This bill was introduced in the state legislature on February 27, 2025 and has been accompanied by a new draft, H4494. It is currently under consideration by the relevant legislative committees. If passed, the law would take effect 90 days after enactment and the first PBM reporting requirements would be due one year later.

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

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