An Act to protect 340B providers, the official text

	SECTION 1. Chapter 176O of the General Laws is hereby amended by adding the following section:- 
	Section 31. (a) In this section “340B covered entity” means an entity participating in the federal 340B drug discount program, as described in 42 U.S.C. § 256b, including its pharmacy or pharmacies, or any pharmacy or pharmacies, contracted with the participating entity to dispense drugs purchased through such program. (b) A pharmacy benefit manager or other third party that reimburses a 340B covered entity for drugs shall not:
	(1) reimburse the 340B covered entity for a drug at a rate lower than that paid for the same drug to entities that are not 340B covered entities; (2) assess any fee, charge-back, or other adjustment on the 340B covered entity on the basis that the covered entity participates in the 340B program; (3) restrict participation in a pharmacy or provider network based on an entity’s status as a 340B covered entity; (4) require the 340B covered entity to enter into a contract with a specific pharmacy to participate in the pharmacy benefit manager or third party’s pharmacy or provider network; (5) require a claim for a drug to include a modifier, supplemental transmission, to indicate that the drug is a 340B drug, or any other method of identifying the claim for a 340B drug, unless the claim is for payment, directly or indirectly, by Medicaid; or (6) impose coverage or benefits limitations, or require an enrollee to pay an additional fee, higher copay, higher coinsurance, second copay, second coinsurance, or other penalty when obtaining a drug from a 340 covered entity; (7) interfere with the patient's right to choose to obtain a drug from a 340B covered entity, including inducement, steering, or offering financial or other incentives.