S.D. Codified Laws § 58-29E-15

Current through the 2024 Legislative Session
Section 58-29E-15 - [Effective 1/1/2025] Discrimination prohibited against pharmacy participating in health plan under Public Health Service Act

Neither a pharmacy benefit manager nor a pharmacy benefit manager affiliate may, directly or indirectly, discriminate against a 340B entity or a pharmacy under contract with a 340B entity, on the basis that the 340B entity or a pharmacy under contract with a 340B entity participates in the 340B drug discount program by imposing terms or conditions that differ from a similarly situated entity that does not participate in the 340B drug discount program.

Discriminatory acts include:

(1) Reimbursing a 340B entity at a rate lower than that paid for the same drug to a pharmacy that has a similar prescription volume but is not a 340B entity;
(2) Assessing a fee or cost, imposing a charge back, or imposing any other adjustment against a 340B entity, on the ground that the 340B entity participates in the 340B drug discount program;
(3) Restricting access by a 340B entity to a pharmacy network on the ground that the 340B entity participates in the 340B drug discount program;
(4) Requiring that a 340B entity contract with a specific pharmacy or health coverage plan as a condition of participating in a pharmacy network;
(5) Imposing a new restriction or an additional charge on a patient who elects to receive a prescription drug through a 340B entity;
(6) Restricting the method by which a 340B entity may dispense or deliver 340B drugs.
(7) Auditing a 340B entity, as provided for under § 58-29F-1, more frequently than similarly situated entities that do not participate in the 340B drug discount program;
(8) Refusing to provide reimbursement or coverage for 340B drugs that are part of a formulary;
(9) Basing prescription drug benefit coverage or formulary decisions on:
(a) The 340B status of a drug, including price or availability; or
(b) Whether a dispensing pharmacy participates in 340B drug pricing;
(10) Imposing on a 340B entity any requirement or restriction that interferes with the entity's ability to maximize the value of the discounts obtained through participation in the 340B drug discount program; and
(11) Imposing on a 340B entity any contractual terms and conditions that differ from those imposed on a similarly situated entity that is not a 340B entity.

SDCL 58-29E-15

SL 2019, ch 213, §4.
Amended by S.L. 2024, ch. 203,s. 4, eff. 1/1/2025.
Added by S.L. 2019, ch. 213,s. 4, eff. 7/1/2019.
This section is set out more than once due to postponed, multiple, or conflicting amendments.