340B Anti-Discrimination Provisions: A Review of Proposed and Enacted Legislation by State

The 340B Drug Pricing Program, which was enacted in 1992 by Section 340B of the federal Public Health Services Act, requires pharmaceutical manufacturers that participate in the Medicaid program to provide covered outpatient drugs at significantly reduced prices to certain health care providers and programs, referred to as “covered entities.” Supporters of the 340B program believe that it is vital to helping hospitals and other covered entities care for their uninsured and underinsured patients, while critics believe that it is being abused.

Over the past several years, often in response to concerns by covered entities, a growing number of states have proposed and/or enacted legislation prohibiting health plans and pharmacy benefit managers (PBMs) from engaging in certain practices with respect to 340B covered entities and their contract pharmacies.

In our new 50-state survey, Manatt tracks 340B proposed and enacted anti-discrimination legislation by state. We have created an infographic based on our survey findings, with a state-by-state look at eight key prohibitions.

The survey provides an in-depth analysis of 340B anti-discrimination legislation across all 50 states, with insights into the following:

  • Which states enacted or proposed 340B anti-discrimination legislation
  • The types of prohibitions imposed by such legislation
  • The targets of such prohibitions (e.g., insurers, PBMs)
  • Potential penalties for violations of these prohibitions

To download the infographic, click here. For more information on accessing the full 50-state survey, contact Barret Jefferds at bjefferds@manatt.com.



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