from MSN – Governor Jim Pillen signed LB 168, otherwise known as the 340B Contract Pharmacy Protection Act, into law at a signing ceremony on Wednesday.
The bill, proposed by Sen. Brian Hardin of Scottsbluff and passed 42-5 on April 3, will prohibit 340B drug manufacturers from interfering with or denying the sale of such drugs to hospitals, clinics or pharmacies that manufacturers contract with.
This program ensures hospitals that accept Medicaid insurers will not be charged marked-up prices for specific medication and allows for the Nebraska Attorney General or county attorneys to enforce compliance with the 340B program. No federal or state tax dollars are used for the program.
“This program has been around for 35 years and I think it’s an essential piece for our hospitals success,” Gov. Pillen said.
Sen. Hardin said the bill will require big pharma to help pay for the cost that it takes to expand various kinds of medical care in 58 of the hospitals across Nebraska.
“Without this that would make those hospitals suffer, in fact, the ones that are most vulnerable, probably a dozen and a half of those 58 hospitals, may not see it through another year if they don’t get that help because our hospitals operate at a 1.4% margin,” Sen. Hardin said.
Sen. Mike Jacobson of North Platte explained that the difference from the savings will go back to the hospitals that are part of the 340B program. It will allow them to use the extra money for other expenses to keep their hospital open.