The bill mandates that the Secretary of Health and Human Services must submit a report to the Joint Committee on Health Care Financing and relevant committees at least 180 days before implementing any restrictions on eligible hospitals' access to discounted prescription drugs under the 340B Drug Pricing Program. The report must detail the proposed restrictions, anticipated savings for the Commonwealth, estimated fiscal impacts on affected hospitals, and strategies to mitigate any negative fiscal impacts. Specifically, the MassHealth program plans to exclude twenty high-cost drugs from coverage when purchased through the 340B program for MassHealth members, while still allowing these drugs to be covered when purchased outside of the program.

The nine newly excluded drugs are identified as high-cost, with a gross cost of $100,000 or more per user per year. The bill emphasizes that this policy will not affect the access of MassHealth members to medically necessary drugs or the reimbursement process for hospitals providing these drugs to non-MassHealth patients. The Secretary does not foresee any fiscal impact from this policy, but will notify affected providers and may adjust the policy based on their feedback. Overall, the bill aims to align MassHealth's drug purchasing strategy with value-based contracts to ensure better financial outcomes for the Commonwealth.