House Study Bill 590 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON HEALTH AND HUMAN SERVICES BILL BY CHAIRPERSON MEYER) A BILL FOR An Act relating to manufacturers and wholesalers of 340B drugs. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 5702YC (2) 90 nls/ko

H.F. _____ Section 1. Section 510D.1, Code 2024, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 01. “340B drug” means a covered outpatient 3 drug for which a manufacturer has offered a reduced price 4 pursuant to 42 U.S.C. §256b, and that is purchased by a covered 5 entity. 6 NEW SUBSECTION . 5A. “Manufacturer” means the same as 7 defined in section 1927(k)(5) of the federal Social Security 8 Act. 9 NEW SUBSECTION . 10. “Wholesaler” means the same as defined 10 in section 1927(k)(11) of the federal Social Security Act. 11 Sec. 2. Section 510D.2, Code 2024, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 4. A manufacturer or wholesaler shall not 14 do any of the following: 15 a. Either directly or indirectly deny, restrict, or 16 otherwise interfere with the acquisition or purchase of a 17 340B drug by a covered entity, or delivery of a 340B drug 18 to a contract pharmacy, unless such purchase or receipt is 19 prohibited by the United States department of health and human 20 services. 21 b. Impose reporting requirements or restrictive contract 22 terms that are not required by law in order for a covered 23 entity or a contract pharmacy to purchase and receive 340B 24 drugs. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill relates to manufacturers and wholesalers of 340B 29 drugs. 30 “340B drug”, “manufacturer”, and “wholesaler” are defined 31 in the bill. The bill prohibits a manufacturer or wholesaler 32 from, directly or indirectly, denying, restricting, or 33 interfering with either the acquisition or purchase of a 340B 34 drug by a covered entity, or the delivery of a 340B drug to a 35 -1- LSB 5702YC (2) 90 nls/ko 1/ 2

H.F. _____ contract pharmacy, unless otherwise prohibited by the United 1 States department of health and human services. The bill 2 prohibits a manufacturer or wholesaler from requiring reporting 3 requirements or imposing contractual restrictions that are 4 not required by law in order for a covered entity or contract 5 pharmacy to purchase and receive 340B drugs. 6 -2- LSB 5702YC (2) 90 nls/ko 2/ 2