Prescription drug pricing.

Plain English Breakdown

Checked against official source text during the last sync.

Rules for Prescription Drug Prices

This law stops drug makers from making it harder for certain clinics to buy and give out drugs at lower prices.

What This Bill Does

• It stops drug companies from doing things that make it harder for specific community health centers to get cheaper drugs.
• It defines what 'discriminatory practices' means when a drug company tries to stop these clinics from buying or giving out drugs.
• It requires these clinics to do certain tasks each year to follow rules set by the federal government.

Who It Names or Affects

• Prescription drug manufacturers
• Qualifying nonhospital 340B community clinics

Terms To Know

discriminatory practices

Actions that unfairly stop or make it harder for certain clinics to buy or give out drugs.

qualifying nonhospital 340B community clinic

A specific type of health center that can get discounted drug prices under federal rules.

Limits and Unknowns

• The bill does not specify the consequences if a drug company breaks these rules.
• It is unclear how this law will be enforced or who will ensure the clinics follow the yearly tasks.

Official Summary Text

AB 1460, as amended, Rogers.
Prescription drug pricing.
Existing federal law requires the United States Secretary of Health and Human Services to enter into an agreement with each manufacturer of covered outpatient drugs to ensure the amount a covered entity is required to pay for those drugs does not exceed the average manufacturer price of the drug under the federal Medicaid program. Existing state law requires a covered entity to dispense only drugs subject to these federal pricing requirements to Medi-Cal beneficiaries. Existing law prohibits a pharmacy benefit manager from discriminating against a covered entity or its pharmacy in connection with dispensing a drug subject to federal pricing requirements or preventing a covered entity from retaining the benefit of discounted pricing for those drugs.
This bill would prohibit a prescription drug manufacturer from engaging in discriminatory
practices that would impose additional conditions, prohibit, restrict, deny, or interfere with a qualifying nonhospital 340B community clinic’s purchase or delivery of a drug subject to federal pricing requirements if the qualifying nonhospital 340B community clinic utilizes a specified pharmacy, including a contract pharmacy, that dispenses the drug to an eligible patient of the qualifying nonhospital 340B community clinic. The bill would define “discriminatory practices” and “qualifying nonhospital 340B community clinic” for these purposes.
The bill would require qualifying nonhospital 340B community clinics to annually perform specified activities to ensure compliance with program rules and guidance from the federal Health Resources and Services Administration.
The bill would make
a related intent statement.
related intent statements.

Current Bill Text

Download Bill PDF