§ 38a-479jjj — Contract with 340B covered entity. Prohibited provisions. Reimbursement rates. Regulations.

(a) For purposes of this section and section 19a-649: (1) “340B covered entity” means an entity authorized to participate in the federal 340B Drug Pricing Program under 42 USC 256b(a)(4), as amended from time to time, and includes any pharmacy under contract with the entity to dispense drugs on behalf of the entity; and (2) “Pharmacy benefits manager” has the same meaning as provided in section 38a-479aaa and includes a wholly or partially owned or controlled subsidiary of a pharmacy benefits manager. (b) On and after January 1, 2024, a contract entered into between a pharmacy benefits manager and a 340B covered entity shall not contain any of the following provisions: (1) A reimbursement rate for a prescription drug that is less than the reimbursement rate paid to pharmacies that are not 340B covered entities; (2) A fee or adjustment that is not imposed on providers or pharmacies that are not 340B covered entities; (3) A fee or adjustment amount that exceeds the fee or adjustment amount imposed on providers or pharmacies that are not 340B covered entities; (4) Any provision that prevents or interferes with a patient's choice to receive a prescription drug from a 340B covered entity, including the administration of the drug; and (5) Any provision that excludes a 340B covered entity from pharmacy benefits manager networks based on the 340B covered entity's participation in the federal 340B Drug Pricing Program. (c) Except to the extent permitted by law, a pharmacy benefits manager may not consider whether an entity is a 340B covered entity when determining reimbursement rates. (d) A pharmacy benefits manager may not retaliate against a 340B covered entity based on its exercise or any right or remedy under this section. (e) To the extent that any contract provision contained in a contract between a pharmacy benefits manager and a 340B covered entity entered into, amended or renewed after January 1, 2024, violates any provision of subsection (b) or (c) of this section, such contract provision shall be void and unenforceable. (f) The Insurance Commissioner may adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of this section.

Legislative History

(P.A. 23-171, S. 15; P.A. 24-68, S. 52.) History: P.A. 24-68 amended Subsec. (b) by making technical changes, effective May 28, 2024.