Louisiana passed a bill that prevents drugmakers from restricting 340B-discounted drugs to safety-net hospitals' contract pharmacies. The law is effective Aug. 1.
About two dozen drug manufacturers have curbed their deliveries of 340B drugs to contract pharmacies, including Teva Pharmaceuticals, Bayer, Eli Lilly, Merck and Pfizer.
Gov. John Bel Edwards signed the law, called the Defending Affordable Prescription Drug Costs Act, June 12. It dictates that "a manufacturer or distributor shall not interfere with a pharmacy contracted with a 340B entity."
The legislation also cracks down on pharmacy benefit managers by blocking the PBM industry from reimbursing 340B entities less than the price of the procured drug and from "placing any additional requirements, restrictions or unnecessary burdens upon the 340B entity that results in administrative costs or fees." Doing so is discriminatory, according to the new law.