Iowa Senate Bill SSB1098

Iowa 2023-2024 Regular Session

• Introduced: 1/30/23
• Refer: 1/30/23

Caption

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.