Healthcare & Life Sciences: Drug Pricing Digest - January 2022 #2

Latham & Watkins LLP


Further State Legislation Seeks to Regulate PBMs in Relation to 340B: Florida, Kentucky, Missouri, Nebraska, and New Hampshire recently introduced legislation aiming to regulate pharmacy benefit managers (PBMs) in relation to their treatment of 340B covered entities and their contract pharmacies. Broadly speaking, such legislation seeks to prohibit PBMs from reimbursing 340B covered entities and their contract pharmacies at a lower rate than they do for other providers or pharmacies, and from otherwise imposing specific policies on covered entities or their contract pharmacies on the basis of 340B participation, such as through the imposition of differential terms and conditions.

As reported in previous editions of this digest (Issue No. 1, Issue No. 2, Issue No. 3, Issue No. 5, and Issue No. 11), a number of other states have already introduced and enacted such legislation. Similarly, H.R. 4390, the PROTECT 340B Act of 2021, was introduced in the House of Representatives last July with the aim “to ensure the equitable treatment of covered entities and pharmacies participating in the 340B drug discount program.”

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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