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 that drug manufacturers sell drugs to Medicaid pharmacies at no more than the 340B discounted price for drugs on the Medicaid preferred drug list and that pharmacy benefits managers pay Medicaid pharmacies the discounted price plus a professional dispensing fee. Additionally, it stipulates that drug wholesalers and distributors must sell drugs at the 340B discounted price under similar conditions and prohibits changes to existing pricing models that would exempt these drugs.

The bill specifies that the study's results must be submitted to the Governor and the Legislature by January 31, 2026. It aims to ensure that Medicaid recipients receive covered drugs at the discounted price while also establishing a rebate mechanism for drug manufacturers if the discounted price exceeds the state Medicaid negotiated price. The act will take effect upon becoming law.