Chapter 175 is hereby amended by inserting after section 47ZZ, added by section 3 of chapter 231 of the acts of 2024, the following section:-

Section 47AAA. (a) For the purposes of this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:

“Branded drug”, a drug sold or marketed under a specific name or trademark.

“Equivalent drug”, a drug that has been approved by the federal Food and Drug Administration as an AB rated generic therapeutic equivalent of a branded drug.

“FDA”, the federal Food and Drug Administration.

(b) A policy, contract, agreement, plan or certificate of insurance issued, delivered or renewed within or without the commonwealth shall not discontinue or reduce its coverage of a branded drug because the FDA has approved an equivalent drug until such equivalent drug has been available for use in the commonwealth for at least 3 calendar months, as determined by the department of public health.  

(c) In making the determination that an equivalent drug is available for use in the commonwealth, the department of public health shall consider: (i) the number and geographic distribution of pharmacies that have the equivalent drug in stock; (ii) the supply level of the equivalent drug in the commonwealth and the incidence of the condition or illness for which the branded drug and equivalent drug are approved treatments; and (iii) any barriers patients may encounter to accessing the equivalent drug in the commonwealth.

(d) The department of public health may promulgate any regulations necessary to implement this section.