An Act protecting 340B contract pharmacies

194th Legislature (2025-2026) Introduced by Brian Murray

The act prohibits manufacturers and distributors from blocking or conditioning delivery of 340B drugs to locations authorized by 340B entities, preserving access and imposing state

Senate concurred

Summary: An Act protecting 340B contract pharmacies (HD 2840)

Overview

An Act protecting 340B contract pharmacies seeks to shield entities participating in the federal 340B drug discount program from certain discriminatory practices by drug manufacturers and distributors. The bill establishes state-law protections that complement federal 340B rules, with enforcement through Massachusetts’ consumer protection framework. It appears to respond to concerns that manufacturers or their agents may restrict or condition the delivery of 340B drugs to locations authorized by 340B entities (such as contract pharmacies).

Key status notes:
- Introduced: February 27, 2025
- Referred to: Elder Affairs (February 27, 2025)
- Senate concurred (status listed as Senate concurrence)

Core purpose

To ensure that 340B drugs can be acquired and delivered to locations authorized by a 340B entity, and to prohibit certain conditions or data demands that could impede access to 340B medications.

To provide a state-law remedy for violations, reinforcing protections already provided under federal law.

Definitions (Section 2)

340B drug: A drug purchasable at a reduced price under the federal 340B program (42 U.S.C. § 256b).

340B entity: An entity authorized to participate in the 340B program (42 U.S.C. § 256b(a)(4)).

Manufacturer: As defined in section 1927(k) of the Social Security Act.

The bill also mentions distributors and third-party logistics providers connected with a manufacturer’s drugs.

Key Provisions (Section 3)

Prohibits a manufacturer, an agent or affiliate, or a distributor/third-party logistics provider from:

Denying, restricting, or prohibiting the acquisition or delivery of a 340B drug to any location authorized by a 340B entity, unless federal law prohibits it.
Requiring a 340B entity to submit claims or utilization data as a condition for acquisition/delivery of a 340B drug, unless such data sharing is required by federal law.

Violations and Enforcement (Section 4)

Violations by manufacturers or distributors constitute a section 11 violation of the Massachusetts Consumer Protection Act.

Each package of 340B drugs subject to a prohibited act is treated as a separate violation, enabling potentially multiple enforcement actions per shipment.

Federal Preemption and Severability (Sections 5–6)

The act is not to be construed as conflicting with federal law; state law must remain compatible with applicable federal statutes and regulations (including 21 U.S.C. § 355-1).

Provisions are severable; invalidity of one provision does not nullify the remainder.

Effective Date (Section 7)

The act becomes effective upon enactment into law; there is no separate delayed or phased-in date.

Potential Impact

Affects: Manufacturers, distributors, and third-party logistics providers in the Massachusetts market, as well as 340B entities (hospitals/clinics) and their contract pharmacies.

Goals: Preserve access to 340B drugs at approved contract pharmacies; curb discriminatory practices; provide a clear Massachusetts consumer-protection remedy.

Compliance: Aligns state enforcement with federal framework, while allowing state-level penalties for prohibited conduct.