Committee narrows H.266 340B bill to manufacturer rules, adds hospital reporting requirement

A legislative committee on Feb. 28 discussed proposed changes to H.266, a bill to create a Title 18 subchapter addressing the 340B drug-pricing program and related conduct by manufacturers, payers and contract pharmacies. Committee members agreed to remove provisions expanding reimbursement restrictions to health insurers and pharmacy benefit managers (PBMs) and to add a hospital reporting requirement from H.202 that would require hospitals participating in 340B to submit annual data to the Green Mountain Care Board.

The discussion centered on two main parts of the draft: new civil- and contract-related prohibitions aimed at manufacturers and a separate set of provisions that would have prohibited insurers, PBMs and other payers from imposing differing reimbursement, fees or administrative burdens on 340B covered entities or contract pharmacies. Jen Carvey of the Office of Legislative Council summarized the draft on the record, saying, “I can put the bill up on the screen, and we can kind of put through it and remind you what's in it and see what you might want to modify.”

Why it matters: The 340B program allows covered entities to obtain prescription drugs at discounted prices; the committee said its work aims to protect patient access to drugs dispensed by 340B entities while avoiding legal conflicts with federal law. Committee members repeatedly flagged the difference between manufacturer conduct (which the draft seeks to restrict) and actions…