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HB 1242

Insurance, Health, Accident - As enacted, revises present law relative to 340B entities. - Amends TCA Title 47, Chapter 18 and Title 56.

114th Regular Session (2025-2026) Introduced by Esther Helton-Haynes

Tennessee revises regulations governing 340B drug pricing program entities to modify their operational and compliance requirements under state insurance and health law.

Comp. became Pub. Ch. 404
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Bill Summary · HB 1242

Legislative bill overview

HB 1242 modifies Tennessee law governing 340B entities—organizations that participate in the federal 340B Drug Pricing Program, which allows hospitals, clinics, and other healthcare providers to purchase prescription drugs at reduced prices. The bill amends provisions in Tennessee's insurance and health codes to revise how these entities operate within the state's regulatory framework.

Why is this important

The 340B program affects drug pricing and accessibility for uninsured and low-income patients, as discounted medications purchased through the program can reduce costs. Changes to how 340B entities operate in Tennessee could influence drug pricing strategies, charity care programs, and pharmaceutical costs across the state's healthcare system.

Potential points of contention

  • Regulatory scope: Unclear whether the amendments expand or restrict 340B entity operations, potentially affecting their ability to purchase discounted drugs or distribute them to patients
  • Transparency and accountability: Changes may impose new reporting or compliance requirements on 340B entities, raising questions about administrative burden versus oversight necessity
  • Market impact: Modifications could affect relationships between healthcare providers, pharmaceutical manufacturers, and insurers, with unclear effects on overall drug pricing and patient access

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

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