The bill mandates that at least 180 days prior to any restrictions on eligible hospitals' access to discounted prescription drugs under the 340B Drug Pricing Program, the Secretary of Health and Human Services must submit a detailed report to relevant legislative committees. This report must outline the proposed restrictions, anticipated savings for the Commonwealth, estimated fiscal impacts on affected hospitals, and strategies for mitigating any negative financial effects. Specifically, the MassHealth program plans to exclude payment for nine high-cost drugs when purchased through the 340B program for MassHealth members, while continuing to cover these drugs when purchased outside of the program.

The nine drugs identified for exclusion are all high-cost, with annual costs exceeding $100,000 per user. The bill emphasizes that this policy will not affect the overall access of MassHealth members to medically necessary drugs or the reimbursement process for hospitals treating non-MassHealth patients. The Secretary does not foresee any fiscal impact from this policy, but will provide notice to affected providers and may adjust the policy based on feedback. The implementation of this limitation is set for no sooner than August 18, 2025.