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Bill

HD 1119

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 2 co-sponsors

Prohibits PBMs from penalizing hospitals participating in the 340B drug discount program to preserve affordable medication access for vulnerable patient populations.

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Bill Summary · HD 1119

Legislative bill overview

HD 1119 would prohibit Pharmacy Benefit Managers (PBMs) from penalizing or discriminating against hospitals and patients who participate in the 340B drug discount program, which allows certain healthcare facilities to purchase medications at reduced prices from manufacturers. The bill aims to protect the ability of eligible hospitals—particularly safety-net providers—to access these federally-negotiated discounts without facing retaliation from PBMs through higher reimbursement rates, formulary exclusions, or other punitive measures.

Why is this important

The 340B program is a key mechanism for hospitals serving uninsured and low-income patients to reduce medication costs and reinvest savings into patient care. PBMs currently have significant leverage over drug distribution and can effectively undermine 340B participation by making it financially unviable for hospitals, reducing access to affordable medications for vulnerable populations. This bill directly addresses whether hospitals can exercise their statutory 340B rights without economic penalty.

Potential points of contention

  • PBM business model impact: PBMs argue that 340B participation reduces their negotiating leverage and margins; they may claim restrictions on their contractual discretion increase overall healthcare costs
  • Definition of "discrimination": Disputes over what constitutes prohibited discrimination versus legitimate business practices (e.g., formulary management, network tiering)
  • Enforcement mechanisms: The bill's enforceability depends on how violations are monitored and what penalties apply, which may be ambiguous without detailed regulatory guidance

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

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