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Hackett Announces Legislation to Prevent Discriminatory Contracting by PBMs

January 28, 2020
Bob D. Hackett News
Hackett Announces Legislation to Prevent Discriminatory Contracting by PBMs
COLUMBUS—State Senator Bob Hackett (R-London) today held a press conference with State Representatives Susan Manchester (R-Waynesfield) and Randi Clites (D-Ravenna) to announce legislation which seeks to protect safety net providers in the 340B program from discriminatory contracting by Pharmacy Benefit Managers (PBMs). Senate Bill 263 prohibits imposing additional fees or reducing reimbursements to Ohio 340B providers just because of their 340B status. It would also prevent health insurance plans from carving out 340B providers. "This legislation seeks to protect the comprehensive services that Ohio's community health centers provide," said Senator Hackett. "It is critically important that we do what we can to ensure that vulnerable and underserved patients receive affordable and quality healthcare."

Under the federal 340B Drug Pricing Program, certain safety net providers access prescription drugs at reduced prices and are mandated to pass that savings to their patients, helping low-income, uninsured and underinsured patients access care they would not receive otherwise. However, PBMs in Ohio and other states are targeting 340B providers with discriminatory contracts that absorb all or part of the 340B savings by reducing reimbursements or adding fees.

“Our legislation protects providers like Community Health Centers who rely on their 340B savings to provide access to affordable and comprehensive care,” said Representative Manchester. “We cannot allow PBMs to continue discriminating against them just because of their status as a 340B provider.”

Establishments use the 340B reimbursements on services that support their mission of providing access to care for the underserved. The ability to reinvest savings to support or expand primary care services increases patients’ access to the care they need, when they need it and in the appropriate, most cost-effective setting. Senate Bill 263 will now be referred to a committee for further consideration.