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The 191st General Court of the Commonwealth of Massachusetts

AN ACT RELATIVE TO HOSPITAL ACCESS TO DISCOUNTED PRESCRIPTION DRUG PRICES.

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to forthwith provide hospitals with better access to discounted prescription drug prices, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1.  Said chapter 118E is hereby further amended by inserting after section 13K the following section:-

Section 13L.  The secretary of health and human services, hereinafter “the secretary”, shall not restrict or limit an eligible hospital’s access to the discounted purchase of prescription drugs to the full extent permitted under section 340B of the Public Health Service Act, as codified under 42 U.S.C. 256b unless the secretary provides the following not less than 180 days before the proposed effective date of the limitation or restriction: (i) notice to eligible hospitals of the proposed restriction or limitation; and (ii) a report with the joint committee on health care financing and the senate and house committees on ways and means detailing: (A) the proposed restriction or limitation; (B) the anticipated aggregate savings to the commonwealth; (C) the estimated fiscal impact of the restriction or limitation on each affected hospital; and (D) the manner in which the secretary plans to mitigate the fiscal impact, which may include measures to maintain savings already achieved by providers under said 42 U.S.C. 256b.

SECTION 2.  This act shall take effect as of July 1, 2019.

Approved, October 7, 2019.