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 requires drug manufacturers to pay a rebate to the state if the discounted price exceeds the state Medicaid negotiated price. Furthermore, Medicaid pharmacies are instructed to provide covered drugs under the 340B program at the discounted price exclusively to Medicaid recipients. The results of the fiscal impact study must be submitted to the Governor and the Legislature by January 31, 2026, and the act will take effect upon becoming law.