Delaware General Assembly

Senate Banking, Business, Insurance & Technology 6/13/24

Awaiting consideration in Committee

HB 383

6/6/24

Harris

Sen. S. McBride

Sen. Poore
Reps. Baumbach, Bush, Dorsey Walker, K. Johnson, Lambert, Minor-Brown, Morrison, Neal, Romer, Wilson-Anton

AN ACT TO AMEND TITLES 18 AND 24 OF THE DELAWARE CODE RELATING TO PROHIBITING DISCRIMINATION AGAINST 340B DRUGS AND COVERED ENTITIES BY MANUFACTURERS AND PHARMACY BENEFITS MANAGERS.

This substitute for House Bill 383 does the following: Like House Bill 383, Section 1 of this Act prohibits discrimination against 340B drug distribution by manufacturers, third-party logistics providers, and wholesale distributors. Violations are deemed an unlawful practice enforceable by the Consumer Protection Unit of the Department of Justice. The Department of Justice has authority to promulgate regulations to implement the provisions of this Act. This Section differs from House Bill 383 by removing repackagers from the list of entities prohibited from engaging in 340B drug discrimination, authorizing the Board of Pharmacy to promulgate regulations and take disciplinary action against both licensees and holders of permits issued by the Board, and requiring covered entities, manufacturers, third-party-logistics providers, and wholesale distributors to publish annual reports on their websites and provide copies of the reports to the Board of Pharmacy, Speaker of the House, Senate President Pro Tempore, Office of the Governor, and members of the House and Senate Health Committees and Joint Finance Committee. Section 2 of this Act prohibits discrimination by pharmacy benefits managers against 340B covered entities. Violations are deemed unfair practices in the insurance business. Contracts purporting to include provisions in violation of this Act are deemed void and unenforceable. This Section differs from House Bill 383 by making technical changes to correct internal references and changing references to “health carriers” to reference “purchasers” instead. Section 3 of this Act contains severability language in the event that any provision or the application of the Act to a person or circumstance is deemed to be invalid. Section 4 of this Act contains non-preemption language to ensure that the Act can be read and interpreted to not conflict with other State or federal law.

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Takes effect upon being signed into law

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