As many 2023 state legislative sessions come to an end, it is a good time to take a closer look at two states—one in the South and one in the Northeast—to see how they are tackling some of the most pressing matters impacting 340B stakeholders.

First, let’s turn to Louisiana. On June 12, Louisiana became only the second state to pass legislation requiring pharmaceutical manufacturers to honor 340B contract pharmacy arrangements. Specifically, the Louisiana law prohibits actions by a drug manufacturer or distributor that would deny, restrict, prohibit, or otherwise interfere with the acquisition of a 340B discounted drug to a pharmacy that is under contract with a 340B entity.

It also prohibits practices by a health insurance issuer, pharmacy benefit manager, or other third-party payor that would limit or impose conditions that would indirectly lower the amount of reimbursement for 340B drug dispensed by a 340B entity or its contract pharmacies. According to Ryan White Clinics for 340B Access, 27 states have passed one or more laws since 2019 addressing discriminatory 340B drug reimbursement. This includes approximately a half dozen in 2023.

The amount of support for the legislation in the Louisiana state legislature was striking. First it passed the Republican controlled House in April by a 97-2 margin. Then, it cruised through the GOP majority Senate by a vote of 38-0 in early June and was signed into law by conservative Democratic Gov. John Bel Edwards on June 12. Read more >