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Action on 340B Contract Pharmacies Turns to the States

As we approach the 16-month mark since we had pivotal arguments over the 340B contract pharmacy program in two federal appellate courts and Congress continues to offer no relief, a growing number of 340B providers are turning to state legislatures for help.  In just the past few months, more bills have been introduced to require drug manufacturers to offer 340B discounts in the contract pharmacy setting than the entire two-year period before.

At publication time, eleven states:  Arizona, Florida, Iowa, Kentucky, Massachusetts, Michigan, Missouri, Nebraska, Oklahoma, Virginia and West Virginia have introduced bills to restore access to drug discounts in the contract pharmacy setting.  They follow the trailblazers of Arkansas and Louisiana who enacted 340B pharmacy protection laws in 2021 and 2023 respectively.  Massachusetts is the furthest along with its state senate unanimously passing a bill in late November that that would protect 340B grantees and certain safety net hospitals from manufacturer restrictions on 340B contract pharmacy arrangements.  It is awaiting action in the State House.

The other ten bills that have recently been introduced would provide protections to all 340B covered entities, unlike the Massachusetts Senate’s version.  I anticipate that the bill will be amended in the House to add the other 340B hospitals in the state. Read more >

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