The 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. Key requirements include that drug manufacturers must sell drugs to Medicaid pharmacies at no more than the 340B discounted price for drugs on the Medicaid preferred drug list and that they must pay a rebate to the state if the discounted price exceeds the state Medicaid negotiated price. Additionally, pharmacy benefits managers are required to pay Medicaid pharmacies the discounted price plus a professional dispensing fee for covered drugs, and drug wholesalers must sell drugs at the discounted price while maintaining existing pricing models.

The agency is required to submit the results of this study to the Governor and legislative leaders by January 31, 2027. The bill is set to take effect on July 1, 2026.