NASHVILLE, Tenn. – State Rep. Esther Helton-Haynes, R-East Ridge, has passed legislation to help struggling Tennesseans continue to have access to essential medications through the 340B program. House Bill 1242 ensures that drug manufacturers cannot interfere with the contract pharmacy arrangements of 340B safety net providers. These arrangements allow vulnerable Tennesseans to receive medications at […]
NASHVILLE, Tenn. – State Rep. Esther Helton-Haynes, R-East Ridge, has passed legislation to help struggling Tennesseans continue to have access to essential medications through the 340B program.
House Bill 1242 ensures that drug manufacturers cannot interfere with the contract pharmacy arrangements of 340B safety net providers. These arrangements allow vulnerable Tennesseans to receive medications at a contract pharmacy that dispenses drugs on behalf of the 340B entity. The legislation also protects 340B entities from excessive data requests from drug manufacturers in exchange for continued access to the 340B drug program.
“Despite achieving record-high profits in recent years, pharmaceutical and insurance companies have begun pulling back support for the safety net providers that many Americans rely on,” said Helton-Haynes, who chairs the House Insurance Subcommittee. “This legislation protects these providers in the Volunteer State and helps ensure residents continue to have access to quality health care and essential medications. The 340B program is a lifeline for many Tennesseans, especially in rural and underserved areas, and I’m committed to further working to protect it in our state”
House Bill 1242 prohibits drug manufacturers from imposing requirements related to drug inventory management systems for 340B drugs. It also prohibits accreditation, recertification, credentialing or recredentialing requirements from drug manufacturers on 340B entities that are not imposed on non-340B-participating pharmacies or entities.
Finally, the legislation grants the Tennessee Attorney General’s Office (AG) the authority to ensure that 340B entities have access to program discounts without interference from drug manufacturers. The savings generated under this legislation will comply with all applicable federal and state laws regarding immigration, abortion, and transgender treatments and procedures for minors.
Established by a bipartisan act of Congress in 1992, the 340B program aims to stretch scarce federal resources and improve the health of low-income, uninsured, and underinsured Americans. It allows pharmaceutical manufacturers to sell outpatient drugs at discounted prices to specific non-profit safety-net healthcare organizations known as 340B covered entities. In Tennessee, safety net providers include St. Jude’s Children’s Research Hospital, Erlanger Baroness Hospital, and Cempa Community Care.
Prescription drug prices in the United States have increased by nearly 40 percent in the last decade, outpacing the rate of inflation, according to CNBC.
House Bill 1242 now heads to Gov. Bill Lee’s desk to be signed into law.
State Rep. Esther Helton-Haynes of East Ridge represents House District 30, which includes part of Hamilton County. She is chair of the Insurance Subcommittee and also serves on the Insurance Committee, Health Committee and Population Health Subcommittee.