Rhode Island 2024 Regular Session

Rhode Island House Bill H7879

Introduced
3/4/24  

Caption

Prohibits any health insurer, pharmacy benefit manager, or other third-party payor from discriminating against any 340B entity participating in a drug discount program.

Impact

The introduction of H7879 is intended to bolster access to affordable medications by ensuring that covered entities can maintain their operations without facing discrimination from insurers or PBMs. By formalizing protections against lower reimbursement rates and additional burdens such as unnecessary administrative costs, this act seeks to stabilize the economic framework in which 340B entities function. If successfully enacted, it could result in enhanced pharmaceutical access for patients relying on 340B entities for healthcare services.

Summary

House Bill H7879, known as the 'Defending Affordable Prescription Drug Costs Act', aims to protect the interests of healthcare entities participating in the federal 340B drug discount program. The bill explicitly prohibits health insurers, pharmacy benefit managers (PBMs), and other third-party payors from discriminating against these entities by denying them fair reimbursement rates for 340B drugs. This ensures that they are compensated at rates equitable to those received by non-340B entities, thereby safeguarding the financial viability of organizations serving vulnerable populations.

Contention

Discussions surrounding H7879 highlight the tension between healthcare cost management and patient access to medications. Supporters advocate for the bill as a necessary measure to prevent discriminatory practices that could otherwise compromise the operational integrity of 340B entities. However, concerns have been raised regarding potential pushback from health insurers who might view the bill as an infringement on their ability to control drug costs and manage reimbursement structures efficiently. Critics argue that the bill could lead to increased costs in the healthcare system overall, sparking debates on balancing assistance for low-income patients with broader healthcare economics.

Companion Bills

No companion bills found.

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