Louisiana enacts model protections for 340B contract pharmacy arrangements

Louisiana Gov. John Bel Edwards June 19 signed into law state-level protections. The Louisiana law prevents drug companies from denying, restricting, prohibiting or interfering with the acquisition or delivery of a 340B drug at a contract pharmacy. Some drug companies have taken increasingly aggressive actions restricting contract pharmacy arrangements, leading states to enact protections.
 
In April, AHA submitted a friend-of-the-court brief in the U.S. Court of Appeals for the 8th Circuit defending a similar Arkansas law against a constitutional challenge brought by the Pharmaceutical Research and Manufacturers of America. The brief argues that Congress did not intend the 340B Drug Pricing Program to displace state efforts to regulate where 340B drugs can be distributed and explains the importance of 340B contract pharmacy arrangements to hospitals.
 
The Louisiana law also prevents a health insurance issuer, pharmacy benefit manager, other third-party payer or its agent from reimbursing a 340B entity for 340B drugs at a lower rate than it pays other entities for the same drug, among other discriminatory actions.