1 of 1 HOUSE DOCKET, NO. 1119 FILED ON: 1/14/2025 HOUSE . . . . . . . . . . . . . . . No. 1274 The Commonwealth of Massachusetts _________________ PRESENTED BY: Brian W. Murray _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act prohibiting PBMs from discriminating against hospitals and patients participating in the 340B drug discount program. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :DATE ADDED:Brian W. Murray10th Worcester1/14/2025James B. EldridgeMiddlesex and Worcester2/10/2025Michael O. MooreSecond Worcester3/6/2025 1 of 2 HOUSE DOCKET, NO. 1119 FILED ON: 1/14/2025 HOUSE . . . . . . . . . . . . . . . No. 1274 By Representative Murray of Milford, a petition (accompanied by bill, House, No. 1274) of Brian W. Murray, James B. Eldridge and Michael O. Moore for legislation to prohibit discrimination against 340B drug discount program participants. Financial Services. The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act prohibiting PBMs from discriminating against hospitals and patients participating in the 340B drug discount program. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 An Act prohibiting PBMs from discriminating against hospitals and patients participating 2in the 340B drug discount program. 3 (a) In this section “340B covered entity” means an entity participating in the federal 340B 4drug discount program, as described in 42 U.S.C. § 256b, including its pharmacy or pharmacies, 5or any pharmacy or pharmacies, contracted with the participating entity to dispense drugs 6purchased through such program. (b) A pharmacy benefit manager or other third party that 7reimburses a 340B covered entity for drugs shall not: 8 (1) reimburse the 340B covered entity for a drug at a rate lower than that paid for the 9same drug to entities that are not 340B covered entities; (2) assess any fee, charge-back, or other 10adjustment on the 340B covered entity on the basis that the covered entity participates in the 11340B program; (3) restrict participation in a pharmacy or provider network based on an entity’s 2 of 2 12status as a 340B covered entity; (4) require the 340B covered entity to enter into a contract with a 13specific pharmacy to participate in the pharmacy benefit manager or third party’s pharmacy or 14provider network; (5) require a claim for a drug to include a modifier, supplemental 15transmission, to indicate that the drug is a 340B drug, or any other method of identifying the 16claim for a 340B drug, unless the claim is for payment, directly or indirectly, by Medicaid; or (6) 17impose coverage or benefits limitations, or require an enrollee to pay an additional fee, higher 18copay, higher coinsurance, second copay, second coinsurance, or other penalty when obtaining a 19drug from a 340 covered entity; (7) interfere with the patient's right to choose to obtain a drug 20from a 340B covered entity, including inducement, steering, or offering financial or other 21incentives.