The proposed "Defending Affordable Prescription Drug Costs Act" introduces a new chapter to Title 5 of the General Laws, aimed at safeguarding 340B entities from discriminatory practices by health insurers and pharmacy benefit managers (PBMs) regarding the reimbursement of 340B drugs. The bill establishes key definitions, including "340B drug," "340B entity," "health insurer," and "pharmaceutical manufacturer," and outlines prohibitions against health insurers and PBMs. These include requirements to reimburse 340B entities at rates equal to those for non-340B entities and a ban on imposing additional fees or administrative burdens on 340B entities. The bill also ensures that patients' choices to receive medications from 340B entities are not hindered by discriminatory practices, particularly in claims processing and identification of 340B drugs, while clarifying that these provisions do not apply to Medicaid reimbursements for covered outpatient drugs.

Furthermore, the bill prohibits pharmaceutical manufacturers, agents, or affiliates from interfering with the acquisition or delivery of 340B drugs to pharmacies contracted with 340B entities, unless such actions are prohibited by federal regulations. Violations of these provisions will be treated as violations of the Rhode Island Deceptive Trade Practices Act, although private or class actions cannot be initiated under this act. The bill ensures that its provisions align with federal law and do not conflict with applicable regulations. It also clarifies that limited distribution of a drug required under federal law does not constitute a violation of this chapter. Overall, the act aims to reinforce protections for 340B entities and promote affordable prescription drug costs.