House lawmakers aim to protect federal drug-pricing program

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OKLAHOMA CITY — Oklahoma House lawmakers will soon consider a bill protecting a federal drug discount program on the chamber’s floor amid what they describe as a misinformation campaign by pharmaceutical companies.

House Bill 2048 would establish the 340B Nondiscrimination Act, requiring a health insurance issuer, pharmacy benefits manager, other third-party payor, or its agent, must reimburse a 340B entity for drugs at a rate lower paid to non-340B entities for the same drug or give a lower reimbursement on the basis that it’s a 340B drug.

Additionally, it prohibits imposing any terms or conditions on any 340B entity that differ from those imposed on non-340B entities on the basis that the entity participates in the federal 340B drug discount program. A manufacturer or distributor must not also deny, restrict, or otherwise interfere with the acquisition or delivery of 340B drugs unless such receipt is prohibited by the United State Department of Health and Human Services. They must not also interfere with a pharmacy contracted with a 340B entity.

State Rep. Preston Stinson, R-Edmond, said 340B is a program pharmaceutical manufacturers agree to participate in as a requirement for having their drugs included on the Medicare and Medicaid formularies. He said the program was created in 1992 to stretch scarce federal resources without expending state or federal tax dollars, and his bill states that Oklahoma will follow federal guidelines and not allow additional restrictions to be placed on 340B by pharmaceutical companies.

The Attorney General may impose civil fines ranging from $100 to $10,000 for each violation of provisions of the act.

Stinson said 340B allows covered health providers, including critical access hospitals, rural health centers, federally qualified health centers, disproportionate share hospitals, Ryan White AIDS clinics and a few others to purchase outpatient prescription drugs at a significant discount.

“These discounts go back to the covered entity to help subsidize their operations, and in many cases, make the difference between the facility remaining open or closing altogether,” Stinson said.

According to a study by the University of Minnesota School of Public Health, 71% of the four largest pharmacy chains, CVS, Walgreens, Rite Aid and Walmart, participate in the 340B program. As the 340B program grows, Stinson said multinational pharmaceutical companies are now trying to shrink the program by forcing owner’s contract terms on health care providers.

Attempts to negotiate with pharmaceutical companies have not been productive, Stinson said.

“There’s a national dark money group that’s been sending videos and text messages to your constituents claiming 340 B is used to provide free healthcare to illegal immigrants and transgender surgeries for kids. These claims are despicable, but they clearly think they can attack us with this despite the fact that these things are demonstrably false,” Stinson told the House Judiciary and Public Safety Oversight Committee Thursday.

Stinson asked the committee if they were going to stand on the side of local health care providers and pharmacists, or with pharmaceutical companies that are unwilling to negotiate and instead spread lies.

The committee passed the measure unanimously. The full House will consider the bill in the coming days.

House Speaker Kyle Hilbert, R-Bristow voiced his support for the measure last week. He said big pharma and international corporations continue to lie, but the bill has bi-partisan support.

“We have no problem in this building when people state their position on different items. People are expected to disagree. In fact, it wouldn’t be good government if we didn’t have people disagreeing,” Hilbert said Thursday afternoon. “But (as for those) tactics, I think a strong message was sent that they’re not going to work here in Oklahoma with passage of that.”