Actions: HPREF [2] HHHC/HJC-HHHC [4] DP/a-HJC [10] DNP-CS/DP [14] ref HJC-HJC [15] DNP-CS/DP [17] PASSED/H (36-28) [19] SHPAC-SHPAC [21] DP [26] fl/a- PASSED/S (26-14) [20] h/cncrd SGND BY GOV (Apr. 8) Ch. 91.
Scheduled: 03-22 08:30 am House Concurrence Calendar
House Bill78 (HB78) relates to prescription drugs by including a new section of the New Mexico Insurance Code to prohibit discrimination against entities participating in the Federal 340 B drug pricing program.Legislation Overview:
House Bill78 (HB78) A new section of the Insurance Code is included by HB78, which prohibits discrimination against participating entities in the 340B program. New language now states that a manufacturer, a manufacturer's agent or an affiliate of a manufacturer shall not directly or indirectly: (1) deny, restrict, prohibit or interfere with the acquisition of a 340B drug by, or delivery of a 340B drug to, a pharmacy that is under contract with a covered entity and is authorized to receive and dispense 340B drugs on behalf of the covered entity unless receipt of the 340B drugs is prohibited by the United States department of health and human services; (2) interfere with a pharmacy contracted with a covered entity; or (3) require a covered entity to submit any claims or utilization data as a condition for allowing the acquisition of a 340B drug by, or delivery of a 340B drug to, a covered entity unless the sharing of claims or utilization data is required by federal law. The definition of "340B program" means the federal drug pricing program created pursuant to 42 U.S.C. Section 256b of federal law. Covered entity means an entity participating in the 340B program.Amendments:
Amended February 5, 2025 in HHHC HHHCa/HB78 The House Health and Human Services Committee amendment is as follows to HB78: On page 2 line18 the terms: “the ability of “ so, the sentence will now read: “(2) interfere with “the ability of” a pharmacy contracted with a covered entity; or” On page 2 line 19 new language will now read: “a covered entity to dispense 340B drugs to the covered entity’s eligible patients” ; or.. The complete sentence will now read: (2) interfere with a pharmacy contracted with a covered entity “to dispense 340B drugs to the covered entity’s eligible patients”or… On page 2 line21 new terms “purchasing or other” is inserted to now read: “ claims or utilization “purchasing or other” data as a condition for allowing the…”. HB78a is now referred to the Judiciary CommitteeCommittee Substitute:
Committee Substitute February 27,2025 in HJC HJCcs/HB78: under Section 1, Paragraph A,4. a new definition is provided in this CS to read: “4) "applicable entity" means one of the following types of organizations that is also certified to participate in the 340B program: (a) an organization that receives federal grant funding and is: 1) a federally qualified health center; 2) a family planning project participating in the family planning program established by Title X of the federal Public Health Service Act of 1944, as amended; 3) a human immunodeficiency virus outpatient early intervention service provider that receives federal grants pursuant to Title XXVI of the federal Public Health Service Act of 1944, as amended; 4) an acquired immune deficiency syndrome drug purchasing assistance program operated by the state; 5) a comprehensive hemophilia diagnostic treatment center; 6) a sexually transmitted disease clinic; or 7) a tuberculosis clinic; (b) a federally qualified health center lookalike; (c) a state or local government unit providing outpatient prescription pharmacy treatment or services; or (d) a critical access hospital; (e) a sole community hospital; (f) an urban Indian health organization; (g) a university of New Mexico hospital or health sciences center patient access point;” A new Paragraph B and C are now included in this CS. They read: “B. A manufacturer, a manufacturer's agent or an affiliate of a manufacturer shall not directly or indirectly: (1) deny, restrict, prohibit or interfere with the acquisition of a 340B drug by, or delivery of a 340B drug to, a pharmacy physically located in the state or contractually obligated with an applicable entity and is authorized to receive and dispense 340B drugs on behalf of the applicable entity unless receipt of the 340B drugs is prohibited by the United States department of health and human services; (2) interfere with the ability of a pharmacy contracted with an applicable entity to dispense 340B drugs to the applicable entity's eligible patients; or (3) require an applicable entity to submit any claims, utilization, purchasing or other data as a condition for allowing the acquisition of a 340B drug by, or delivery of a 340B drug to, an applicable entity unless the sharing of claims or utilization data is required by federal law. “ “C. By July 1, 2027 and annually thereafter, each applicable entity shall report to the department of health the following information and data from all sites and contract pharmacy arrangements operated by the applicable entity during the preceding year: (1) the applicable entity's: (a) name; (b) service address; (c) 340B program identification number; (d) specific designation that identifies the type or types of organizations listed in Paragraph (4) of Subsection A of this section that the applicable entity qualifies as; (e) operational costs related to participation in and compliance with the 340B program, including costs paid to outside vendors; and (f) use of any savings from participating in the 340B program, including the amount of savings used for the provision of charity care, discounted care, community benefits or discounted health care to the indigent; (2) the aggregate acquisition cost for all prescription drugs obtained under the 340B program; (3) the aggregate payment amount received for all drugs obtained, dispensed and administered under the 340B program; (4) a copy of the applicable entity's policy for providing low-income patients with financial assistance toward the cost of 340B drugs; (5) the number and percentage of the applicable entity's patients who received a discount on either a prescription drug dispensed or administered under the 340B program or another service provided by the applicable entity; and (6) the financial demographics of the applicable entity's patients, including the percentage of: (a) uninsured patients; (b) patients who are medicaid beneficiaries; and (c) patients who are beneficiaries of the children's health insurance program.” Committee Substitute March 11, 2025 in HJC HJCcscs/HB78a: The House Judiciary Committee Substitute for HB78csa in its title strikes “REPORTS” and term “applicable entity” has been rewritten to state: "applicable entity" means an organization that receives federal grant funding and is recognized by the federal health resources and services administration as a federally qualified health center or a federally qualified health center lookalike”. The prohibition found in Paragraph B remains the same as in the earlier HB78cs. It reads: “ A manufacturer, a manufacturer's agent or an affiliate of a manufacturer shall not directly or indirectly: (1) deny, restrict, prohibit or interfere with the acquisition of a 340B drug by, or delivery of a 340B drug to, a pharmacy contractually obligated with an applicable entity and is authorized to receive and dispense 340B drugs on behalf of the applicable entity unless receipt of the 340B drugs is prohibited by the United States department of health and human services; (2) interfere with the ability of a pharmacy contracted with an applicable entity to dispense 340B drugs to the applicable entity's eligible patients; or (3) require an applicable entity to submit any claims, utilization, purchasing or other data as a condition for allowing the acquisition of a 340B drug by, or delivery of a 340B drug to, an applicable entity unless the sharing of claims or utilization data is required by federal law”.