The "340B Nondiscrimination Act" is designed to protect 340B entities, which are organizations involved in the federal 340B drug discount program, from discriminatory practices by health insurance issuers, pharmacy benefits managers (PBMs), and other third-party payors. The legislation prohibits these entities from reimbursing 340B organizations at lower rates than non-340B entities, imposing additional fees or conditions, and discriminating against patients' choices regarding drug sources. It also establishes requirements for contracts between 340B entities and pharmacies, ensuring that manufacturers cannot interfere with the acquisition or delivery of 340B drugs.

Furthermore, the bill enhances existing laws related to pharmacy benefits management, granting enforcement authority to the Insurance Department and the Attorney General to impose civil fines for violations. It includes provisions for confidentiality during investigations and clarifies that the act does not conflict with federal law. Key insertions in the bill include prohibitions against discrimination based on a provider's participation in the 340B program, requirements for PBMs to avoid imposing additional fees or restrictions, and mandates that drug formulary decisions must not be influenced by a drug's 340B status. The Attorney General is also empowered to impose penalties on PBMs for violations and to collect fines, with funds directed to an enforcement fund. The act is set to take effect on November 1, 2025.

Statutes affected:
Introduced: 36-6960, 36-6962
Floor (House): 36-6960, 36-6962
Floor (Senate): 36-6960, 36-6962
Engrossed: 36-6960, 36-6962
Enrolled (final version): 36-6960, 36-6962