Medicaid Monitor
Policy Intelligence
Medicaid Monitor
Policy Intelligence
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Industry·June 26, 2026

Proposed Legislation Would Restructure Federal 340B Drug Pricing Program

Congressional legislation has been introduced to overhaul the 340B drug discount program, which requires pharmaceutical manufacturers to provide discounted outpatient drugs to eligible healthcare providers. The bill would restructure eligibility requirements and oversight mechanisms for the program that currently serves safety-net providers including some Medicaid managed care organizations and federally qualified health centers. If enacted, the changes would affect how covered entities access discounted medications and could alter prescription drug cost structures for Medicaid plans contracting with 340B-eligible providers. The proposal comes amid ongoing disputes between manufacturers and covered entities over contract pharmacy arrangements and duplicate discount prohibitions.

Why it matters for managed care

Changes to 340B eligibility and oversight could affect Medicaid MCO pharmacy costs and duplicate discount compliance obligations when members receive care at 340B-covered entities.

Pharmacy · Managed Care

Read the full article at statnews.com

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