Relating to discriminatory practices by a health benefit plan issuer, pharmacy benefit manager, and third-party payor and certain prescription drug manufacturers, distributors, and related persons with respect to certain entities participating in a federal drug discount program; providing a civil penalty.

89th Legislature (2025) Introduced by Trent Ashby and 16 co-sponsors

HB 3265 penalizes health plans and drug intermediaries that discriminate against providers participating in federal drug discount programs, protecting program participation in Texas.

Committee report sent to Calendars

#business&commerce--tradepractices(i0006) #civilremedies&liabilities(i0065) #discrimination(s0052) #federalrelations(s0862) #health&humanservicescommission(v0177) #healthcareproviders(i0387) #health--general(i0385) #insurance--health&accident(i0422) #medicine&prescriptiondrugs(s7338) #pharmacies&pharmacists(s1192) #pharmacybenefitmanagers(s0648) #statehealthservices #departmentof(v0463)

Legislative bill overview

HB 3265 prohibits health insurance plans, pharmacy benefit managers, and drug manufacturers from discriminating against entities that participate in federal drug discount programs (such as 340B programs). The bill establishes civil penalties for violations and aims to prevent these entities from penalizing healthcare providers and organizations that leverage federal discounts.

Why is this important

The 340B program allows certain healthcare providers, hospitals, and charities to purchase medications at discounted rates to stretch limited resources. If insurers or pharmacy benefit managers retaliate against 340B participants through higher costs, formulary restrictions, or other penalties, it undermines the program's purpose and increases costs for vulnerable populations. This bill protects program participation incentives in Texas.

Potential points of contention

Business burden on intermediaries: Pharmacy benefit managers and insurers argue compliance costs could increase administrative complexity and potentially raise insurance premiums for consumers

Definition and scope ambiguity: The bill's definition of "discriminatory practices" may be vague, creating litigation risk and uncertainty about what constitutes prohibited behavior

Federal versus state authority: Questions exist regarding whether Texas can regulate federal drug program participants when federal law already governs the 340B program; potential conflicts with existing federal frameworks