WeVote
Log In

Bill

Bill

HB 4422

Relating to discriminatory practices by a health benefit plan issuer, pharmacy benefit manager, and third-party payor with respect to certain entities participating in a federal drug discount program.

89th Legislature (2025) Introduced by Toni Rose

HB 4422 prohibits health insurers and pharmacy benefit managers from penalizing healthcare providers that participate in federal 340B drug discount programs.

Referred to Insurance
#business&commerce--tradepractices(i0006) #discrimination(s0052) #healthcareproviders(i0387) #health--general(i0385) #insurance--health&accident(i0422) #medicine&prescriptiondrugs(s7338) #pharmacybenefitmanagers(s0648)
0
WeVote Research Nonpartisan
Bill Summary · HB 4422

Legislative bill overview

HB 4422 addresses discriminatory practices by health insurers, pharmacy benefit managers (PBMs), and third-party payors against entities that participate in federal drug discount programs. The bill seeks to prevent these intermediaries from penalizing or disadvantaging pharmacies, clinics, or other healthcare providers simply because they participate in programs like the 340B Drug Pricing Program, which allows eligible entities to purchase drugs at significantly reduced prices.

Why is this important

The 340B program enables hospitals, community health centers, and other safety-net providers to stretch limited resources by purchasing discounted medications. Without protections, PBMs and insurers could deliberately steer patients away from participating providers or impose unfavorable contract terms as retaliation, undermining the program's effectiveness and ultimately increasing costs for vulnerable populations these entities serve.

Potential points of contention

  • Industry pushback: PBMs argue they need flexibility in network management and pricing negotiations; restrictions could limit their ability to control costs or manage drug utilization
  • Definition ambiguity: The bill's language regarding what constitutes "discrimination" may be unclear, potentially leading to disputes over legitimate business practices versus prohibited conduct
  • Implementation complexity: Determining how regulators will monitor compliance and what remedies apply to affected entities remains undefined, creating uncertainty for insurers and providers alike

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

Sign in to ask a question.