Mississippi joins 29 other states in 340B protections

By Langjahr Law, LLC

On April 12, 2024, Mississippi enacted the Defending Affordable Prescription Drug Costs Act, in part, to prohibit health insurance issuers, PBMs, and other third-party payors from taking certain actions related to 340B covered entities.  The Act takes effect July 1, 2024. 

340B Trend:  In doing so, Mississippi joins AL, AZ, AR, CA, CO, CT, GA, IL, IN, IA, KY, LA, MD, MI, MN, MT, NE, NV, NM, NC, ND, OH, OR, SD, TN, UT, VT, VA, and WV with laws addressing actions by health plans or PBMs or both related to 340B drugs and entities.  Additional 340B legislation is pending in some of the above and other states.

Health Insurance Issuers and PBMs: “Health insurance issuer” is defined as an entity subject to MS insurance laws or the jurisdiction of the MS Commissioner of Insurance.  However, “pharmacy benefit manager,” remains defined as a business that administers the prescription drug portion of pharmacy benefit management plans or health insurance plans for plan sponsors, insurance companies, unions, and HMOs.  As result, readers might consider whether (or not) the Act applies to PBMs that administer pharmacy benefits exclusively for ERISA plans.  “340B entity” is defined to include an entity participating in the federal 340B program, as well as its pharmacy or any pharmacy contracted with the entity to dispense 340B drugs.