StrickenHall languageof wouldthe beHouse deletedof fromRepresentatives and93rd underlinedGeneral languageAssembly would- beRegular addedSession, to2021 presentAmendment law.Form ______________________________________________________________________ Subtitle of House Bill No.

State1881 ofTO ArkansasESTABLISH AsTHE Engrossed:340B DRUG PRICING NONDISCRIMINATION ACT.

H4/15/21______________________________________________________________________ 93rdAmendment GeneralNo. Assembly A Bill Regular Session, 2021 HOUSE BILL 1881 5 By:

Representatives1 M.to House Bill 1881 Amend House Bill No.

Gray,1881 Wardlaw,as Murdock,originally V.introduced:

FlowersPage By:1, line 36, delete "(4)" and substitute "(4)(A)" AND Page 2, delete lines 1 and 2, and substitute the following:

Senator"(i) RapertA 8payor Foror Anthe Actpayor's Tointermediary; Be Entitled AN ACT TO ESTABLISH THE 340B DRUG PRICING NONDISCRIMINATION ACT;

AND FOR OTHER PURPOSES.

Subtitle TO ESTABLISH THE 340B DRUG PRICING NONDISCRIMINATION ACT.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

SECTION 1.

Arkansas Code Title 23, Chapter 92, is amended to add an additional subchapter to read as follows:

Subchapter 6 — 340B Drug Pricing Nondiscrimination Act 23-92-601.

Title.

This subchapter shall be known and may be cited as the "340B Drug Pricing Nondiscrimination Act".

23-92-602.

Definitions.

As used in this subchapter:

(1) "Patient" means an individual seeking medical diagnosis and treatment;

(2) "Pharmacy" means the same as defined in § 17-92-101;

(3) "Provider" means a licensed pharmacist as defined in § 17- 92-101;

(4)(A) "Third party" means:

*ANS395* 04-15-2021 11:26:49 ANS395 As Engrossed:

H4/15/21 HB1881 (i) A payor or the payor's intermediary;

andand" (5)AND "340BPage drug2, pricing"delete meansline the33, programand establishedsubstitute under section 602 of the Veteransfollowing: Health Care Act of 1992, Pub.

L."23-92-604.

No.Third party and pharmaceutical manufacturer — Prohibitions." AND Page 3, delete lines 1 through 8, and substitute the following:

102-585."(3) Discriminate, lower the reimbursement, or impose any separate terms upon a pharmacy in any other third party contract on the basis that a pharmacy participates in 340B drug pricing;

23-92-603.(4) Require a pharmacy to reverse, resubmit, or clarify a 340B" AND Page 3, line 11, delete "(6)" and substitute "(5)" *.ANS434* ANS434 - 04-14-2021 09:53:05 Page 1 of 2 AND Page 3, line 14, delete "(7)" and substitute "(6)" AND Page 3, line 16, delete "(8)" and substitute "(7)" AND Page 3, line 18, delete "(9)" and substitute "(8)" AND Page 3, line 20, delete "(10)" and substitute "(9)" AND Page 3, delete line 23, and substitute the following:

Third-party"network requirements.on the basis of participation in 340B drug pricing." The Amendment was read ________________________________________________________________________________ By:

ARepresentative thirdM. party shall:

(1)Gray InformANS/ANS a- patient04-14-2021 that09:53:05 the_________________________ patientANS434 isChief notClerk requiredANS434 to- use04-14-2021 a09:53Amendment mail-orderNo. pharmacy;

(2)___ Obtainto aHB1881 signedPage waiver2 from a patient before allowing the use of a2 mail-order pharmacy;

(3) Make drug formulary and coverage decisions based on the third party's normal course of business;

(4) Allow a patient the freedom to use any pharmacy or any provider the patient chooses, whether or not the pharmacy participates in 340B drug pricing;

and (5) Eliminate discriminatory contracting as it relates to:

(A) Transferring the benefit of 340B drug-pricing savings from one (1) entity, including critical access hospitals, federally qualified health centers, other hospitals, or 340B drug-pricing participants and their underserved patients, to another entity, including without limitation pharmacy benefits managers, private insurers, and managed care organizations;

(B) Pricing that occurs when offering a lower reimbursement for a drug purchased under 340B drug pricing than for the same drug not purchased under 340B drug pricing;

(C) Refusal to cover drugs purchased under 340B drug pricing;

(D) Refusal to allow 340B drug-pricing pharmacies to participate in networks;