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Bill

Bill

HB 1281

Prohibitions Against Discriminatory Practices relating to 340B Entities and 340B Drugs

2026 Regular Session Introduced by Gallop Franklin

HB 1281 prohibits manufacturers and insurers from restricting 340B drug program access, expanding affordable medication availability for vulnerable patient populations but restricting pharmaceutical company pricing strategies.

Died in Health Care Facilities & Systems Subcommittee
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Bill Summary · HB 1281

Legislative bill overview

HB 1281 prohibits discriminatory practices against entities participating in the 340B drug pricing program, which allows certain healthcare providers (hospitals, clinics, charities) to purchase drugs at significantly reduced prices for uninsured/underinsured patients. The bill establishes protections preventing pharmaceutical manufacturers, insurers, and other stakeholders from penalizing or restricting access to 340B drugs based on participation in the program.

Why is this important

The 340B program directly affects drug affordability for vulnerable populations. Manufacturers have increasingly implemented restrictions on 340B drugs through "carve-outs" and prior authorization requirements, effectively limiting the program's benefit. This bill addresses whether such restrictions constitute illegal discrimination, potentially expanding affordable drug access but also affecting pharmaceutical company profit margins and business practices.

Potential points of contention

  • Pharmaceutical industry opposition: Drug manufacturers argue they need flexibility to manage drug distribution, prevent fraud, and maintain pricing structures; they may view this as regulatory overreach
  • Definition and enforcement scope: Ambiguity about what constitutes "discriminatory practices" could create litigation uncertainty and disputes over legitimate business restrictions versus unlawful discrimination
  • Program integrity concerns: Questions whether stronger 340B protections could enable diversion of discounted drugs into non-eligible channels or increase overall program costs passed to other consumers

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

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