Colorado state capitol building
Colorado lawmakers voted to stop health insurers, pharmacy benefit managers (PBMs), and other third-party payers from discriminating against 340B covered entities and their contract pharmacies.

Colorado Lawmakers Pass 340B Anti-discrimination Bill

The Colorado General Assembly has voted to stop health insurers, pharmacy benefit managers (PBMs), and other third-party payers from discriminating against 340B covered entities and their contract pharmacies.

Gov. Jared Polis (D) is expected to sign the bill, HB22-1122. He had not yet done so as of this morning. The state House passed it on April 22 and the state Senate on May 10.

HB22-1122 prohibits insurers, PBMs, and other payers from:

  • Refusing to reimburse a 340B covered entity or contract pharmacy for dispensing 340B drugs, imposing additional requirements or restrictions on 340B covered entities or contract pharmacies, or reimbursing a 340B covered entity or contract pharmacy for a 340B drug at a rate lower than the amount paid for the same drug to pharmacies that are not 340B covered entities or contract pharmacies.
  • Assessing a fee, charge back, or other adjustment against a 340B covered entity or contract pharmacy, or restricting a 340B covered entity’s or contract pharmacy’s access to the third-party payer’s pharmacy network, because the 340B covered entity or contract pharmacy participates in the 340B drug pricing program.
  • Requiring a 340B covered entity or contract pharmacy to contract with a specific pharmacy or health coverage plan in order to access the third-party payer’s pharmacy network.
  • Imposing a restriction or an additional charge on a patient who obtains a prescription drug from a 340B covered entity or contract pharmacy.
  • Restricting the methods by which a 340B covered entity or contract pharmacy may dispense or deliver 340B drugs.

Another part of the bill prohibits PBMs or their representatives from reimbursing pharmacies at less than the national average drug acquisition cost for prescription drugs.

The bill authorizes the state insurance commissioner to adopt rules implementing the new law.

Colorado Community Health Network (CCHN), which represents the state’s 20 community health centers, pushed for the bill’s passage.

“The 340B program is under attack at multiple levels,” CCHC Senior Manager of Policy and Advocacy Alice Steiner said. “CCHC and Colorado’s FQHCs are thankful that the Colorado legislature took this important step in protecting a program that is so vital to an FQHC’s ability to provide affordable prescription drugs and other critical services to Colorado’s most vulnerable populations.”

Illinois Governor Signs 340B Anti-discrimination Bill

Illinois Gov. J.B. Pritzker (D) last week signed legislation forbidding pharmacy benefit managers, third party payers, and Medicaid managed care organizations from discriminating against 340B covered entities and their contract pharmacies. The state legislature completed action on and sent the bill to Pritzker in late March.

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