Amended Senate Bill 263 Summary

• Prohibits health plan issuers and third-party administrators from imposing reimbursement rates on 340B covered entities below the national average drug acquisition cost rate or, if unavailable, below wholesale acquisition cost.

• Prohibits dispensing fees on 340B covered entities that are lower than fees provided to terminal distributors of dangerous drugs or that differ from fees charged to non-340B providers.

• Bars health plan issuers, third-party administrators, and medicaid managed care organizations from discriminating against 340B covered entities in ways that prevent or interfere with enrollee choice to receive prescription drugs from these entities.

• Requires terminal distributors of dangerous drugs to pay 340B covered entities the full reimbursement amount received from patients and insurers, minus only a fee agreed upon in writing.

• Renders any contract provisions violating these requirements unenforceable and replaces them with the reimbursement rates or fees applicable to non-340B covered entities.