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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
AMENDED
tax credit review
committee; meetings
(NOW: 340B drug program; prohibitions)
As passed by the Senate, S.B. 1176 required the Joint Legislative Income Tax Credit Review Committee to meet annually.
The House of Representatives adopted a strike-everything amendment that does the following:
Purpose
Prohibits outlined actions in the sale and reimbursement of the 340B Drug Pricing Program (340B Program) drugs.
Background
The 340B Program is a federally established discount drug program aimed at stretching limited federal resources as far as possible to reduce the price of outpatient pharmaceuticals and to expand health services in communities with high volumes of uninsured and low-income patients. The 340B Program requires pharmaceutical manufacturers to provide outpatient drugs at significantly discounted prices to qualified health care organizations that care for many uninsured and low-income patients, including community health centers, children's hospitals and critical access hospitals (HRSA).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits all contracts issued, delivered or renewed on or after January 1, 2024, for a third party that reimburses for 340B drugs, from:
a) discriminating in reimbursement on the basis that the pharmacy dispenses a 340B drug;
b) assessing any fee, chargeback, clawback or adjustment on the basis that a pharmacy dispenses a 340B drug;
c) excluding a pharmacy from a third party's pharmacy network on the basis that the pharmacy dispenses a 340B drug; and
d) restricting the methods or pharmacies within a third party network by which a 340B covered entity may dispense or deliver 340B drugs.
2. Applies the 340B Program prohibitions to third parties that provide or manage drug coverage under a health care plan in the state.
3. Excludes each of the following from the 340B Program prohibitions:
a) the Arizona Health Care Cost Containment System (AHCCCS) and its contractors to the extent the services are provided in accordance with behavioral health, state Medicaid or equivalent Medicaid programs from other states;
b) the Department of Health Services to the extent the services are provided under the AIDS Drug Assistance Program; and
c) any individual or entity excluded from AHCCCS coverage.
4. Defines terms.
5. Becomes effective on the general effective date.
Amendments Adopted by the House of Representatives
ˇ Adopted the strike-everything amendment relating to 340B Programs.
House Action
GE 3/23/22 DPA/SE 9-2-2-0
3rd Read 5/31/22 53-0-7
Prepared by Senate Research
May 31, 2022
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