Last Updated: Dec 9, 2021
Early next year, PAMED expects to see movement on HB 1319 to help curb the predatory practices of Pharmacy Benefit Managers (PBMs) in the Commonwealth of Pennsylvania. The legislation, introduced by Rep. Carrie Lewis DelRosso (Allegheny), aims to address PBM’s interference with the funding health centers and 340B plan participants use to provide care to low-income or uninsured residents.
The 340B Drug Pricing Program, established in 1992, allows outpatient drugs to be sold to health care clinics and hospitals at discounted prices directly from manufacturers that participate in the Medicaid program. These clinics and hospitals can stretch these resources further, providing lower prices to patients and expanding access to care.
Recently, PBMs in the Commonwealth – and across the country – have been targeting these entities with contracts that reduce reimbursement and absorb all of the 340B savings. These entities are forced to either pay more for the resources they need and lose savings or lose access to the resources all together. These predatory contracts hurt 340B participating entities and patients, reducing access to care or driving up costs.
The proposed legislation will prohibit imposing fees or reducing reimbursement to Pennsylvania 340B providers - just because they are a 340B provider. PAMED will continue to monitor this legislation and will keep members up to date on its status.