The bill mandates that at least 180 days prior to implementing any restrictions on eligible hospitals' access to discounted prescription drugs under the 340B Drug Pricing Program, the Secretary of the Executive Office 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 fiscal consequences. Specifically, the bill introduces a limitation whereby four high-cost drugs—Aucatzyl, Encelto, Kebilidi, and Zevaskyn—will not be covered by MassHealth when purchased through the 340B program for MassHealth members, although they will still be reimbursed when purchased outside of this program.

The bill emphasizes that this policy will not affect the overall access of MassHealth members to these drugs or the reimbursement process for hospitals treating non-MassHealth patients. It also highlights that while the fiscal impact on hospitals may be limited to temporary cash-flow issues, potential savings for the Commonwealth could arise from value-based payment contracts tied to these drugs. The Secretary does not foresee a fiscal impact that would require mitigation, but MassHealth will communicate with affected providers and may adjust the policy based on feedback.