A bill for an act relating to contract pharmacies and covered entities that participate in the 340B drug program.(See SF 419.)
Impact
By explicitly defining contract pharmacies, covered entities, and the stipulations of the 340B program, SSB1098 aims to bolster healthcare accessibility by ensuring that entities involved in this program are not unfairly treated in terms of reimbursement rates and operational terms. This legislation could enhance the ability of covered entities to maximize their cost savings and ultimately improve the availability of affordable prescription drugs to eligible patients.
Summary
Senate Study Bill 1098 proposes regulations regarding the interaction between pharmacies and entities participating in the 340B drug discount program. Specifically, it aims to prevent discriminatory practices by group health plans, health carriers, third-party administrators, and pharmacy benefits managers (PBM) against covered entities and contract pharmacies that utilize the 340B program. The bill emphasizes that these organizations must provide equitable reimbursement to covered entities and their pharmacies as compared to similarly situated entities not involved in the program.
Contention
While proponents of SSB1098 argue that it will protect vital healthcare services provided through the 340B program, critics may raise concerns about the implications of increased regulations on the insurance and pharmacy sectors. The bill's requirement for equal treatment in reimbursement may face opposition from entities that argue it could lead to increased costs for insurance providers. Additionally, there may be discussions about whether this increased regulation might discourage pharmacies from participating in the 340B program, ultimately impacting patient access to necessary medications.
Replaced by
A bill for an act relating to contract pharmacies and covered entities that participate in the 340B drug program. (Formerly HSB 137.) Effective date: 07/01/2023.
Pharmacies; prohibit drug manufacturer and wholesalers from preventing a licensed pharmacy from acquiring drugs from entities that participate in a particular federal drug discount program
Health: pharmaceuticals; drug manufacturers from engaging in certain conduct with pharmacies participating with a 340B program; prohibit. Amends 1978 PA 368 (MCL 333.1101 - 333.25211) by adding sec. 17757c. TIE BAR WITH: SB 95'25