North Dakota Gov. Doug Burgum (R) has signed legislation prohibiting pharmacy benefit managers (PBMs) from discriminating against 340B covered entities or their contract pharmacies.
Burgum’s approval of H.B. 1492 on April 21 made North Dakota one of six states to enact 340B non-discrimination laws this year. Others are Arkansas, Indiana, Tennessee, Utah, and West Virginia. Arkansas, Indiana, North Dakota, and Tennessee’s laws are novel, and Utah and West Virginia’s are add-ons to pre-existing 340B non-discrimination laws.
The new North Dakota law bars PBMs from
- discriminating against or interfering with a 340B covered entity or a pharmacy providing services under contract with an entity, including refusing to contract with a pharmacy
- modifying the definition of “pharmacy” by contract, provider manual, or other means
- reimbursing a lower dollar amount for a drug purchased under 340B
- interfering with any 340B pharmacy service between a covered entity and contract pharmacy
- charge a pharmacy a claims-adjudication fee.
The law says contract and claims information between a covered entity and contract pharmacy is confidential.
A PBM that violates the law’s provisions is guilty of a class B misdemeanor for each violation.