Existing federal law creates a program, known as the 340B Program, by which certain hospitals and other facilities that provide health care to low-income patients are able to purchase certain drugs at discounted rates. (42 U.S.C. § 256b) Existing law prohibits a pharmacy benefit manger from prohibiting a pharmacist or pharmacy from taking certain actions to assist a person in obtaining a less expensive alternative or generic drug. (NRS 683A.179) Existing law imposes certain requirements relating to the operation of health carriers. (NRS 687B.470-687B.850) Sections 1, 3, 6 and 7 of this bill prohibit pharmacy benefit managers and health carriers, including governmental entities that provide coverage for employees, from: (1) discriminating against a covered entity that participates in the 340B Program to purchase drugs at a discounted rate or a pharmacy that contracts with such an entity with regard to reimbursement; (2) taking certain actions to limit the ability of such an entity or pharmacy to receive the full benefit of participating in that program; (3) excluding such an entity or pharmacy from an insurance network because the entity or pharmacy participates in that program; (4) restricting the ability of a person to receive a 340B drug; or (5) taking certain other actions to limit the participation of an entity or pharmacy in the Program. Section 1 exempts from those prohibitions a pharmacy benefit manager that manages prescription drug benefits under Medicaid. Sections 1 and 3 also provide that the provisions of those sections do not prohibit the Department of Health and Human Services, the Division of Health Care Financing and Policy of the Department of Health and Human Services or a Medicaid managed care organization from taking certain actions necessary to comply with federal law or ensure the financial stability of the Medicaid program. Sections 2, 4 and 5 of this bill make conforming changes to indicate the proper placement of sections 1 and 3 in the Nevada Revised Statutes. Existing law authorizes the Department of Health and Human Services to administer a program pursuant to federal law to provide therapeutics to treat certain persons who have been diagnosed with the human immunodeficiency virus. (NRS 439.529) Section 9 of this bill prescribes certain limitations on the use of money allocated to the program. Section 8 of this bill requires the program to take certain actions and refrain from certain activity to ensure that a covered provider that participates in the 340B Program to purchase drugs at a discounted rate or a pharmacy that contracts with such a provider receives the full benefit of participating in the Program. Section 8 additionally prohibits the program administered by the Department from: (1) denying a request from such a covered provider or contract pharmacy to participate in the network of the program in certain circumstances; or (2) engaging in certain discrimination against a covered provider or contract pharmacy.

Statutes affected:
As Introduced: 683A.171, 687B.600, 687B.670, 287.010, 287.04335, 439.529
Reprint 1: 683A.171, 687B.600, 687B.670, 287.010, 287.04335, 439.529
Reprint 2: 683A.171, 687B.600, 687B.670, 287.010, 287.04335, 439.529
As Enrolled: 683A.171, 687B.600, 687B.670, 287.010, 287.04335, 439.529
BDR: 683A.171, 687B.600, 687B.670, 287.010, 287.04335, 439.529