NY State Senate Bill 2023-S8992

Current Bill Status - In Senate Committee Health Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 08, 2024	referred to health

2023-S8992 (ACTIVE) - Details

Current Committee:: Senate Health
Law Section:: Public Health Law
Laws Affected:: Add §280-d, Pub Health L

2023-S8992 (ACTIVE) - Summary

Relates to establishing the "340B prescription drug anti-discrimination act"; prohibits pharmaceutical manufacturers and pharmacy benefit managers from discriminating against covered entities and New York state pharmacies based on participation in the drug discount program authorized by section 340B of the federal public health service act.

2023-S8992 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8992

SPONSOR: RIVERA
 
TITLE OF BILL:

An act to amend the public health law, in relation to establishing the
340B prescription drug anti-discrimination act

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 provides the short title for this act to be known as the "340B
prescription drug antidiscrimination act."

Section 2 amends Public Health Law to prohibit a pharmaceutical manufac-
turer, pharmacy benefit manager, wholesaler, outsourcing facility, or
third-party logistics provider from inserting additional requirements or
burdens, or from restricting the utilization of contract pharmacies by
covered entities under the 340B program. It provides the Commissioner of
Health (COH) with the enforcement authority to impose civil monetary
penalties on any entity found in violation, and directs the COH to refer
any matters in which a civil monetary penalty is imposed to the State
Education Department and the Office of the Attorney General for review.

Section 3 provides a severability clause.

Section 4 provides an immediate effective date.

 
JUSTIFICATION:

The 340B prescription drug anti-discrimination act seeks to prevent
discriminatory practices targeting healthcare providers in New York who
participate in the federal 340B program. Established by Congress to
support providers serving vulnerable populations, the 340B program
mandates drug manufacturers to provide discounts on outpatient drugs to
clinics, hospitals, and health systems catering to low-income, rural,
and medically underserved patients. By leveraging these discounts, safe-
ty-net providers can extend their resources to reach more eligible
patients and offer comprehensive services. However, in recent years,
some pharmaceutical companies and pharmacy benefit managers have imposed
restrictions and requirements on New York's 340B covered entities, thus
depriving them of essential cost savings.  Such actions not only
discriminate against these entities but also hinder their ability to
provide comprehensive care to their communities.

With the implementation of the Medicaid pharmacy carve-out, New York's
340B providers face substantial losses in savings. Despite this, many
continue to rely on the 340B program to save on pharmaceutical purchases
for other payers, such as commercial health insurers and Medicare.
However, both the pharmaceutical industry and pharmacy benefit managers
have engaged in practices aimed at weakening the 340B program, including
denying required discounts, imposing labor-intensive requirements, and
refusing to distribute 340B drugs to hospital and contract pharmacies.
These practices redirect savings intended for serving vulnerable commu-
nities towards corporate profit margins.

This bill aims to prohibit such discriminatory practices and ensure that
the savings from the 340B program remain available to safety-net health-
care providers in New York State. By safeguarding the integrity of the
340B program, this legislation preserves vital resources for healthcare
providers serving vulnerable populations, ultimately promoting equitable
access to essential healthcare services across the state. The bill
establishes enforcement mechanisms, including civil monetary penalties
for violations, to uphold these protections and maintain the integrity
of the 340B program in New York State.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S8992 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8992
 
                             I N  S E N A T E
 
                               April 8, 2024
                                ___________
 
 Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Health
 
 AN ACT to amend the public health law, in relation to  establishing  the
   340B prescription drug anti-discrimination act
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Short title. This act shall be known and may  be  cited  as
 the "340B prescription drug anti-discrimination act".
   § 2. The public health law is amended by adding a new section 280-d to
 read as follows:
   § 280-D. PRESCRIPTION DRUG DISCRIMINATION PROHIBITED.  1. DEFINITIONS.
 (A)  "340B  PROGRAM"  SHALL MEAN THE DRUG DISCOUNT PROGRAM AUTHORIZED BY
 SECTION 340B OF THE FEDERAL PUBLIC  HEALTH  SERVICE  ACT  (42  U.S.C.  §
 256B).
   (B)  "COVERED  ENTITY"  SHALL HAVE THE SAME MEANING AS IS SET FORTH IN
 SECTION 340B(A)(4) OF THE FEDERAL PUBLIC HEALTH SERVICE ACT (42 U.S.C. §
 256B).
   (C) "CONTRACT PHARMACY" SHALL INCLUDE NEW YORK STATE  PHARMACIES  THAT
 RECEIVE  DRUGS  PURCHASED  UNDER  A CONTRACT PHARMACY ARRANGEMENT WITH A
 COVERED ENTITY.
   (D) "DISPENSING" SHALL INCLUDE A PHARMACY'S ENTIRE DISTRIBUTION  PROC-
 ESS,  INCLUDING,  BUT NOT LIMITED TO, THE ORDERING, PURCHASING, DELIVER-
 ING, RECEIPT, AND SALE OF DRUGS.
   (E) "PHARMACY" SHALL HAVE THE SAME MEANING AS IS SET FORTH IN  SECTION
 SIXTY-EIGHT HUNDRED TWO OF THE EDUCATION LAW.
   2.  PROHIBITION OF DISCRIMINATORY PRACTICE. NO PHARMACEUTICAL MANUFAC-
 TURER, PHARMACY BENEFIT MANAGER, WHOLESALER,  OUTSOURCING  FACILITY,  OR
 THIRD-PARTY LOGISTICS PROVIDER SHALL:
   (A)  DENY,  PROHIBIT,  CONDITION, OR OTHERWISE LIMIT THE DISPENSING OF
 DRUGS FROM A COVERED ENTITY OR CONTRACT PHARMACY, OTHER THAN SUCH  LIMI-
 TATIONS  EXPLICITLY  IDENTIFIED  OR  EXPLICITLY  AUTHORIZED EITHER UNDER
 SECTION 340B OF THE FEDERAL PUBLIC  HEALTH  SERVICE  ACT  (42  U.S.C.  §
 256B), OR ANY REGULATIONS PROMULGATED PURSUANT TO SUCH STATUTE;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11664-03-4

 S. 8992                             2
 
   (B) DENY ACCESS TO DRUGS MANUFACTURED BY A PHARMACEUTICAL MANUFACTURER
 TO  A COVERED ENTITY OR CONTRACT PHARMACY BASED ON SUCH COVERED ENTITY'S
 OR CONTRACT PHARMACY'S PARTICIPATION IN THE 340B PROGRAM; OR
   (C)   IMPOSE  REQUIREMENTS,  EXCLUSIONS,  REIMBURSEMENT  TERMS,  FEES,
 AUDITS, CLAIM IDENTIFICATION, OR OTHER CONDITIONS ON A COVERED ENTITY OR
 CONTRACT  PHARMACY  THAT  DIFFER  FROM  THE  REQUIREMENTS,   EXCLUSIONS,
 REIMBURSEMENT TERMS, FEES, AUDITS, CLAIM IDENTIFICATION, OR OTHER CONDI-
 TIONS  APPLIED  TO ENTITIES THAT DO NOT PARTICIPATE IN THE 340B PROGRAM,
 OTHER THAN SUCH LIMITATIONS EXPLICITLY IDENTIFIED OR EXPLICITLY  AUTHOR-
 IZED  EITHER UNDER SECTION 340B OF THE FEDERAL PUBLIC HEALTH SERVICE ACT
 (42 U.S.C. § 256B), OR ANY  REGULATIONS  PROMULGATED  PURSUANT  TO  SUCH
 STATUTE.
   3.  ENFORCEMENT.  (A)  ANY PROVISION OF A CONTRACT THAT IS CONTRARY TO
 THIS ACT SHALL BE VOID AND UNENFORCEABLE.
   (B) THE COMMISSIONER SHALL HAVE THE AUTHORITY TO IMPOSE A CIVIL  MONE-
 TARY  PENALTY  PURSUANT  TO SECTION TWELVE OF THIS CHAPTER ON ANY ENTITY
 THAT VIOLATES THE PROVISIONS OF THIS ACT.
   (C) THE COMMISSIONER SHALL REFER ANY MATTERS IN WHICH A CIVIL MONETARY
 PENALTY IS BEING IMPOSED TO THE EDUCATION DEPARTMENT AND THE  OFFICE  OF
 THE ATTORNEY GENERAL FOR REVIEW.
   § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 4. This act shall take effect immediately.

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Senate Bill S8992

Sponsored By

Current Bill Status - In Senate Committee Health Committee

2023-S8992 (ACTIVE) - Details

2023-S8992 (ACTIVE) - Summary

2023-S8992 (ACTIVE) - Sponsor Memo

2023-S8992 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8992

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Sponsored By

Gustavo Rivera

Current Bill Status - In Senate Committee Health Committee

2023-S8992 (ACTIVE) - Details

2023-S8992 (ACTIVE) - Summary

2023-S8992 (ACTIVE) - Sponsor Memo

2023-S8992 (ACTIVE) - Bill Text download pdf

Comments