The proposed bill amends Chapter 176O of the General Laws to prohibit pharmacy benefit managers (PBMs) from discriminating against hospitals and patients that participate in the federal 340B drug discount program. It introduces a new section that defines a "340B covered entity" and outlines specific restrictions on how PBMs can interact with these entities. Key provisions include prohibiting PBMs from reimbursing 340B covered entities at lower rates than non-340B entities, assessing fees or adjustments based on 340B participation, and restricting network participation based on 340B status.

Additionally, the bill prevents PBMs from requiring 340B covered entities to contract with specific pharmacies, mandates that claims for 340B drugs do not need to include identifying modifiers unless for Medicaid, and prohibits imposing additional costs or penalties on patients obtaining drugs from 340B entities. It also safeguards patients' rights to choose their pharmacy without interference from PBMs, ensuring that they are not steered away from 340B covered entities through financial incentives or other means.