Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 140 (2021GS)

Sponsor

Sen. Vickers, E.

Final action

Governor Signed 3/17/2021

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms; and
• prohibits certain actions by a pharmacy benefit manager or third party with respect to a federally qualified health center that participates in the 340B discount drug program.

Every vote on this bill

Bill text

PHARMACY BENEFIT AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Evan J. Vickers
House Sponsor: 
Steve Eliason
LONG TITLE
General Description:
This bill amends provisions relating to pharmacies that are operated by or contract with
a federally qualified health center.
Highlighted Provisions:
This bill:
▸ defines terms; and
▸ prohibits certain actions by a pharmacy benefit manager or third party with respect
to a federally qualified health center that participates in the 340B discount drug
program.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
31A-46-310
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
31A-46-310
 is enacted to read:
 31A-46-310.
Prohibited actions with respect to a federally qualified health center.
(1) As used in this section, "federally qualified health center":
(a) means the same as that term is defined in 42 U.S.C. Sec. 1395x(aa)(4); and
(b) includes the pharmacy or pharmacies that are operated by or contract with a
federally qualified health center described in Subsection (1)(a) to dispense drugs purchased
through the federally qualified health center.
(2) This section applies to a contract entered into or renewed on or after January 1,
2022, between an insurer and a pharmacy described in Subsection (1)(b).
(3) An insurer may not vary the amount that the insurer reimburses to a federally
qualified health center for a drug on the basis of whether:
(a) the drug is a 340B drug; or
(b) the pharmacy is a 340B entity.
(4) Subsection (3) does not apply to a drug reimbursed, directly or indirectly, by the
Medicaid program.
(5) An insurer or an insurer's pharmacy service entity may not:
(a) on the basis that a federally qualified health center participates, directly or through a
contractual arrangement, in the 340B drug discount program:
(i) assess a fee, charge-back, or other adjustment on a federally qualified health center;
(ii) restrict access to the insurer's pharmacy network;
(iii) require the federally qualified health center to enter into a contract with a specific
pharmacy to participate in the insurer's pharmacy network;
(iv) create a restriction or an additional charge on a patient who chooses to receive
drugs from a federally qualified health center; or
(v) create any additional requirements or restrictions on the federally qualified health
center; or
(b) require a claim for a drug to include a modifier to indicate that the drug is a 340B
drug unless the claim is for payment, directly or indirectly, by the Medicaid program.