New State Model Legislation Aims to Protect 340B Program

Today, ASHP and 340B Health released model legislation that states can use to prohibit drug manufacturers from imposing restrictions on 340B contract pharmacy arrangements. This model legislation highlights the important role states can play in protecting an essential program for patients.

Under federal rules, the 340B Drug Pricing Program allows hospitals to contract with pharmacies to purchase certain medications at a reduced price for eligible patients.

Starting in late 2020, drug manufacturers began restricting these arrangements, including by refusing to honor 340B discounts for medications dispensed through contract pharmacies.

Eight states have passed laws that protect 340B contract pharmacies. Legislation in Louisiana and Arkansas resulted in more than a dozen drug manufacturers lifting all contract pharmacy restrictions in those two states.

By crafting the model legislation, we want to help more states build on this success. ASHP urges members to share this model legislation with your government relations teams, who can use it in their state advocacy work. We will continue to keep you informed of ASHP’s own aggressive advocacy efforts to protect this program for our members and the patients they serve.