LD 1018
An Act to Protect Health Care for Rural and Underserved Areas by Prohibiting Discrimination by Participants in a Federal Drug Discount Program
This legislation prohibits drug manufacturers from restricting or otherwise interfering with the acquisition of a 340B drug by, or delivery of a 340B drug to, a 340B contract pharmacy on behalf of a 340B entity. It also requires that manufacturers do not impose requirements, exclusions, reimbursement terms or other conditions different from those applied to non-contract pharmacies or non-covered entities.
Ongoing actions by pharmaceutical companies and pharmacy benefit managers are diverting savings away from patient care and into corporate pockets. State legislatures across the country are taking action to ensure that the health care safety-net can continue to access this program. Contract pharmacy restrictions have allowed drug companies to benefit at the expense of the health care safety-net and have limited access to care.
Sponsored by
Senator Bailey (D-York)
Cosponsored by
Representative Morris (R-Turner)
Senator Baldacci (D-Penobscot)
Senate President Daughtry (D-Cumberland)
Senator Moore (R-Washington)
Representative Ducharme (R-Madison)
Representative Fredericks (R-Sanford)
Representative Mastraccio (D-Sanford)
Representative Mathieson (D- Kittery
Representative Nutting (R-Oakland)
What does it look like when a drug company discriminates against a 340B entity?
Over the past five years, more than 35 pharmaceutical manufacturers have placed several restrictive and discriminatory requirements on 340B entities, resulting in millions in lost savings for Maine’s safety-net providers. LD 1018 addresses these common tactics and protects the health care safety-net in Maine – at no cost to the taxpayer or government.
Contract Pharmacy Restrictions
Drug manufacturers are limiting the maximum distance between a 340B entity and a contract pharmacy and limiting the number of pharmacies a 340B entity can partner with. For one Maine FQHC that has 12 service sites across 9 counties, this means a patient may be required to travel over an hour to access an essential medication since they are no longer able to access a contract pharmacy close to their home.
Discriminatory Actions Related to Reimbursement
Manufacturers and PBMs are imposing terms and conditions on 340B entities that differ from non-340B entities (fees, charges, clawbacks, dispensing fees, pharmacy network restrictions, inventory management system requirements, data submission requirements). These unnecessary requirements are incredibly burdensome and interfere with a patient’s choice to receive drugs from a 340B entity.
Our use of the term “340B entity” is meant for the ease of the reader and to provide consistency in the bill text. It does not redefine the federal term of “340B covered entity”
For over 30 years, the 340B Program has increased access to care for rural and underserved communities. Efforts to restrict this program only serve to increase profits for pharmaceutical companies at the expense of patient care across Maine.