This bill mandates the Agency for Health Care Administration to conduct or contract for a detailed fiscal impact study to assess the feasibility of implementing provisions related to discounted drug prices under the 340B Drug Pricing Program. The study will evaluate several key requirements, including the obligation for drug manufacturers to sell drugs to Medicaid pharmacies at the 340B discounted price if the drugs are on the Medicaid preferred drug list and are covered under the 340B program. Additionally, it stipulates that pharmacy benefits managers must pay Medicaid pharmacies the discounted price plus a professional dispensing fee for eligible drugs, and it outlines similar requirements for drug wholesalers and distributors.

The bill also includes a provision that if a drug manufacturer sells a drug at the 340B discounted price that exceeds the state Medicaid negotiated price, the manufacturer must pay a rebate to the state for the difference. Furthermore, Medicaid pharmacies are required to provide covered drugs under the 340B program at the discounted price exclusively to Medicaid recipients. The study must be completed and submitted to the Governor and legislative leaders by January 31, 2026, and the act will take effect upon becoming law.