The bill amends Chapter 176O of the General Laws to introduce protections for 340B covered entities, which are organizations participating in the federal 340B drug discount program. It defines a 340B covered entity and outlines specific prohibitions for pharmacy benefit managers and other third parties that reimburse these entities for drugs. These prohibitions include ensuring that reimbursement rates for 340B drugs are not lower than those for non-340B entities, preventing fees or adjustments based on 340B participation, and prohibiting restrictions on network participation due to 340B status.

Additionally, the bill prohibits requiring 340B covered entities to enter into contracts with specific pharmacies, mandates that claims for 340B drugs do not need to include identifying modifiers unless for Medicaid, and prevents coverage limitations or additional fees for patients obtaining drugs from 340B entities. It also safeguards patients' rights to choose their pharmacy without interference from third parties, including any inducements or financial incentives.