Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S848 Compare Versions

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22 SENATE DOCKET, NO. 2318 FILED ON: 1/17/2025
33 SENATE . . . . . . . . . . . . . . No. 848
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 John J. Cronin
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act relating to covered entity reporting to increase accountability to safeguard benefit for
1313 vulnerable patients.
1414 _______________
1515 PETITION OF:
1616 NAME:DISTRICT/ADDRESS :John J. CroninWorcester and Middlesex 1 of 4
1717 SENATE DOCKET, NO. 2318 FILED ON: 1/17/2025
1818 SENATE . . . . . . . . . . . . . . No. 848
1919 By Mr. Cronin, a petition (accompanied by bill, Senate, No. 848) of John J. Cronin for
2020 legislation to require all covered entities to file an annual report to the Center for Health
2121 Information and Analysis to increase accountability to safeguard benefit for vulnerable patients.
2222 Health Care Financing.
2323 The Commonwealth of Massachusetts
2424 _______________
2525 In the One Hundred and Ninety-Fourth General Court
2626 (2025-2026)
2727 _______________
2828 An Act relating to covered entity reporting to increase accountability to safeguard benefit for
2929 vulnerable patients.
3030 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
3131 of the same, as follows:
3232 1 SECTION 1. Chapter 12C of the General laws is hereby amended by inserting after
3333 2section 9, the following new section:-
3434 3 Section 9A.
3535 4 (a) DEFINITIONS. For the purposes of this section:
3636 5 (1) “340B program,” means the federal drug pricing program described in 42 U.S.C.
3737 6256b.
3838 7 (2) “Center for Health Information and Analysis,” the center established by the
3939 8provisions of section 2 of this chapter.
4040 9 (3) “Charity care,” the term in line 23 of worksheet S–10 to the Medicare cost report or in
4141 10any successor form. 2 of 4
4242 11 (4) “Contract pharmacy,” a pharmacy with which a covered entity has contracted to
4343 12dispense covered outpatient drugs on behalf of the covered entity to patients of the covered
4444 13entity, whether distributed in person, via mail, or by other means.
4545 14 (5) “Covered entity,” a covered entity as defined in 42 U.S.C. 256b(a)(4).
4646 15 (6) “Covered outpatient drug,” a covered outpatient drug, as defined in 42 U.S.C. 1396r-
4747 168(k)(2), that has been subject to any offer for reduced prices by a manufacturer pursuant to 42
4848 17U.S.C. 256(b)(a)(1), and is purchased by a covered entity.
4949 18 (b) Beginning on [April 1, 2026], each covered entity shall annually report to the Center
5050 19for Health Information and Analysis, in a form and manner determined by the center, the
5151 20following information about the prior year regarding the covered entity and each offsite
5252 21outpatient facility associated with the covered entity:
5353 22 (1) Delineated by form of insurance or payor type, including but not limited to Medicaid,
5454 23Medicare, commercial insurance, and uninsured:
5555 24 (i) Aggregate acquisition cost paid for all covered outpatient drugs;
5656 25 (ii) Aggregated payments received by insurers or payors for all covered outpatient drugs;
5757 26and
5858 27 (iii) Total number of prescriptions and percentage of the covered entity’s prescriptions
5959 28that were filled with covered outpatient drugs;
6060 29 (2) Total operating costs of the covered entity, including itemized costs for: 3 of 4
6161 30 (i) Implementing direct pass through of 340B program discounts to patients of the
6262 31covered entity in the form of lower cost sharing for covered outpatient drugs at the point of
6363 32dispensing or administration;
6464 33 (ii) Implementing a sliding fee scale for covered outpatient drugs at the point of sale for
6565 34patients with incomes less than 200% of the Federal Poverty Guidelines; and
6666 35 (iii) Charity care;
6767 36 (3) Total payments made by the covered entity or any agent of the covered entity to:
6868 37 (i) Contract pharmacies for 340B program-related services and other functions;
6969 38 (ii) Third-party administrators for managing any components of the covered entity’s
7070 39340B program; and
7171 40 (iii) Any other third parties in connection with 340B program-related compliance, legal,
7272 41educational, and/or administrative costs;
7373 42 (4) Total number of contract pharmacies, and:
7474 43 (i) Number of contract pharmacies located out-of-state and the states in which such out-
7575 44of-state contract pharmacies are located;
7676 45 (ii) Total number of prescriptions and orders for covered outpatient drugs filled by the
7777 46covered entity and by each offsite outpatient facility associated with the covered entity, and the
7878 47percentage of such prescriptions or orders that were filled at contract pharmacies, delineated by
7979 48in-state and out-of-state contract pharmacies; 4 of 4
8080 49 (iii) Total remuneration paid to or retained by contract pharmacies or their affiliates for
8181 50any 340B program-related services performed on behalf of the covered entity and each offsite
8282 51outpatient facility associated with the covered entity; and
8383 52 (iv) The percentage change in remuneration described in subsection [(b)(4)(iii)] for the
8484 53prior year compared to the year before that.
8585 54 (c) An officer of the covered entity shall certify the completeness and accuracy of the
8686 55report submitted pursuant to subsection (b).
8787 56 (d) The Center for Health Information and Analysis post all reports submitted by covered
8888 57entities pursuant to subsection (b) on a publicly accessibly website.
8989 58 SECTION 2. This act shall take effect upon its passage.