States Guard Drug Discount Program as Pharma Wages Legal Battles

State legislation aiming to block discriminatory practices used against pharmacies in a federal drug discount program is ramping up this year despite legal challenges from the drug industry.

The legislation is designed for the 340B Drug Pricing Program, a federal plan allowing covered entities such as qualifying safety-net hospitals, clinics, and other providers to purchase outpatient drugs at discounted prices from manufacturers participating in Medicaid.

The program has faced challenges in recent years regarding the program’s integrity, how discounts are used, or where they’re provided. Drug distribution has become a pain point as some manufacturers have restricted discounts to pharmacies ...