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Bill

H 4494

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

Prohibits pharmacy benefit managers from retaliating against hospitals and patients using federally-authorized 340B drug discount program to preserve medication affordability for vulnerable populations.

Reporting date extended to Friday, July 31, 2026
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Bill Summary · H 4494

Legislative bill overview

H 4494 would prohibit Pharmacy Benefit Managers (PBMs) from retaliating against or discriminating against hospitals and patients who participate in the 340B drug discount program. The 340B program allows eligible healthcare providers—primarily hospitals serving low-income and uninsured populations—to purchase certain medications at significantly discounted prices. This bill aims to prevent PBMs from penalizing providers or patients for using these federally-authorized discounts.

Why is this important

PBMs act as intermediaries between drug manufacturers, insurers, and pharmacies, controlling which drugs are covered and at what prices. Without protections, PBMs could theoretically retaliate against 340B participants through higher reimbursement rates, formulary restrictions, or patient cost-sharing increases—effectively negating the discount program's benefit. This bill directly impacts healthcare affordability for vulnerable populations and hospital finances, particularly for safety-net institutions serving uninsured and Medicaid patients.

Potential points of contention

  • PBM business model concerns: PBMs may argue the bill restricts their contractual freedom and ability to manage drug utilization, potentially affecting their negotiating leverage with manufacturers
  • Definition of "discrimination": The bill's scope depends heavily on how discrimination is defined and enforced—vague language could lead to litigation or create unintended loopholes
  • Market effects: Unclear whether protections increase drug costs for other patients/insurers or simply redistribute savings from PBMs to hospitals and vulnerable populations

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

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