HSB 590 (LSB 5702YC (2) 90)

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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 510D.1, Code 2024, is amended by adding the following new subsections:
   NEW SUBSECTION.  01.  “340B drug” means a covered outpatient drug for which a manufacturer has offered a reduced price pursuant to 42 U.S.C. §256b, and that is purchased by a covered entity.
   NEW SUBSECTION.  5A.  “Manufacturer” means the same as defined in section 1927(k)(5) of the federal Social Security Act.
   NEW SUBSECTION.  10.  “Wholesaler” means the same as defined in section 1927(k)(11) of the federal Social Security Act.
    Sec. 2.  Section 510D.2, Code 2024, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  A manufacturer or wholesaler shall not do any of the following:
   a.  Either directly or indirectly deny, restrict, or otherwise interfere with the acquisition or purchase of a 340B drug by a covered entity, or delivery of a 340B drug to a contract pharmacy, unless such purchase or receipt is prohibited by the United States department of health and human services.
   b.  Impose reporting requirements or restrictive contract terms that are not required by law in order for a covered entity or a contract pharmacy to purchase and receive 340B drugs.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to manufacturers and wholesalers of 340B drugs.
   “340B drug”, “manufacturer”, and “wholesaler” are defined in the bill. The bill prohibits a manufacturer or wholesaler from, directly or indirectly, denying, restricting, or interfering with either the acquisition or purchase of a 340B drug by a covered entity, or the delivery of a 340B drug to a contract pharmacy, unless otherwise prohibited by the United States department of health and human services. The bill prohibits a manufacturer or wholesaler from requiring reporting requirements or imposing contractual restrictions that are not required by law in order for a covered entity or contract pharmacy to purchase and receive 340B drugs.