Prescription drug pricing.

Assembly Member Rogers, joined by Assembly Members Carrillo, Ransom, and Ward, proposes new protections for community clinics participating in the federal 340B Drug Pricing Program through legislation that would prevent drug manufacturers from imposing restrictions on clinics' pharmacy arrangements. The measure addresses practices such as limiting clinics to a single contract pharmacy or restricting medication eligibility for discounts.

The legislation establishes annual compliance requirements for participating clinics, including independent audits of contract pharmacies, documentation of how 340B savings support patient care, and recertification with the federal Health Resources and Services Administration. Drug manufacturers retain the ability to request claims data annually to investigate potential duplicate discounts or verify program eligibility, though they cannot withhold 340B pricing during data reconciliation.

Qualifying facilities under the bill include licensed community clinics, city or county-operated clinics exempt from licensure, intermittent clinics, and rural health clinics that participate in the federal 340B program. The measure maintains existing federal oversight provisions, including manufacturers' rights to audit participating entities for compliance with program requirements regarding duplicate discounts and drug resale restrictions.