TN HB1242

Drug manufacturers prohibited from imposing additional requirements on 340B entities as a condition for drug acquisition, including demanding health information, claims data, or utilization data beyond what federal or state law requires, effective July 1, 2025

Manufacturers cannot impose discriminatory audit, accreditation, or credentialing requirements on 340B entities that differ from requirements placed on non-340B pharmacies and providers

Entities contracting with 340B covered entities to dispense drugs cannot interfere with business relationships, restrict drug choices, or exclude claims that would cause net losses to the covered entity

Violations constitute unfair or deceptive trade practices with civil penalties of $50,000 per violation, with each drug package counting as a separate violation

Exemptions apply to TennCare, CoverKids, and state prescription drug discount programs; restrictions in place before June 1, 2025 are grandfathered in