PROTECT 340B Act of 2023 Preserving Rules Ordered for The Entities Covered Through 340B Act of 2023
The bill's implementation is expected to bolster protections for 340B covered entities, which include hospitals and clinics that serve disadvantaged communities. By ensuring these entities are treated on par with other providers, HB2534 aims to enhance access to necessary drugs for patients, particularly those enrolled in Medicare and Medicaid. The proposed law allows the Secretary of Health to enforce penalties against any pharmacy benefit managers or health plans that violate these regulations, thus strengthening the compliance framework surrounding 340B operations.
House Bill 2534, also known as the 'PROTECT 340B Act of 2023', aims to ensure the equitable treatment of covered entities and pharmacies participating in the 340B drug discount program. This bill seeks to prohibit discriminatory actions by pharmacy benefit managers, health plans, and insurers against entities that participate in the 340B program, specifically focusing on preventing them from imposing unfair contractual terms or reimbursement discrepancies based on their status as 340B providers. It underscores the significance of the 340B program within the healthcare safety net, especially for entities servicing low-income patients.
Notably, there are concerns regarding potential pushback from insurers and pharmacy benefit managers who may resist adapting to these new regulations. The bill addresses issues about the existing practices that have limited the financial support available to safety-net providers, which are crucial for maintaining healthcare services in economically burdensome areas. Critics may argue that implementing such drastic measures could lead to increased operational costs for insurers and possibly slower reimbursement processes, thereby affecting the overall healthcare system.