OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-355
AN ACT ESTABLISHING THE 340B DRUG PRICING
NONDISCRIMINATION ACT.
Primary Analyst: MP 4/5/22
Contributing Analyst(s): JS
Reviewer: ME
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 23 $ FY 24 $
UConn Health Ctr. Various - Savings Significant Significant
Insurance Dept. IF - Cost Up to
50,000
None
Note: IF=Insurance Fund; Various=Various
Municipal Impact: None
Explanation
The bill results in an annual significant savings to the University of
Connecticut Health Center beginning in FY 23. The health center has
multiple 340B covered entities, including John Dempsey Hospital, and
has not been fully benefiting from the provisions of the 340B program
due to manufacturer and pharmacy benefits manager (PBM) practices.
The health center estimates that the foregone savings due to these
practices has reached approximately $7 million to $9 million annually.
It is anticipated that the bill will reduce or eliminate the practices it
prohibits, and consequently result in greater 340B savings to UConn
Health Center.
The bill results in a cost of up to $50,000 to the Insurance Fund in FY
23 for the Insurance Department to adopt implementing regulations. As
the agency lacks expertise in the business practices and contracting of
PBMs and drug manufacturers, it is anticipated the agency would need 2022SB-00355-R000354-FN.DOCX Page 2 of 2
to hire a consultant to assist with developing such regulations.
1
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the level of the 340B discount.
1
The fiscal impact to the Insurance Department for enforcing the provisions of the bill
would depend on and be associated with the regulations the agency must adopt under
the bill.