340B in the States: 2023 State Legislative Recap and 2024 Outlook

340B Insight

This week we are joined by Amanda Sellers Smith, legal counsel for 340B Health. Amanda tracks and responds to 340B state legislative and regulatory actions. She discusses recent developments in state-based legislation, including 340B reporting requirements, nondiscrimination prohibitions, and bans on drugmaker restrictions. She also looks ahead to what hospitals and their government relations departments can expect in 2024. Before the interview, we give an update on a set of unprecedented changes to a major drugmaker’s restrictive contact pharmacy policy, and we share the news that four of the five drugmakers that HRSA audited last fiscal year for 340B compliance received findings for overcharging covered entities.

340B Nondiscrimination Laws

Amanda shares with us the importance of protecting 340B from discriminatory practices by pharmacy benefit managers (PBMs) and other payers when it comes to reimbursing providers for 340B drugs. More than half of the states have enacted such laws, including California, whose law will affect many providers and patients.

Protecting Access to Contract Pharmacies

Amanda discusses two states that have implemented laws against drugmaker restrictions on drugs dispensed at community and specialty pharmacies. Arkansas enacted its law in 2021 and Louisiana did so earlier this year, leading some drugmakers to suspend their restrictive policies in both states. However, the pharmaceutical industry is challenging these laws in federal courts, where the legal process can take years to play out.

Hospital Reporting and Looking Ahead to 2024

Amanda explains an increased interest in 340B hospital reporting requirements, with states such as Maine and Minnesota enacting new laws and Connecticut, Indiana, and Virginia considering legislation. As hospitals and their government relations team prepare for the 2024 session, she explains how 340B Health is monitoring legislation and supporting our members in their advocacy efforts.

Check out all of our episodes on the 340B Insight podcast website. You also can stay updated on all 340B Health news and information by visiting our homepage. If you have any questions you’d like us to cover in this podcast, email us at [e-mail].

Resources

1. 340B Health Analyzes Potential Implications of Unprecedented Provisions in BMS Contract Pharmacy Policy Update
2. HRSA Issues Findings for a Fourth Drugmaker Audit in FY 2023