HB139: HB139 Pharmacies; prohibit drug manufacturer and wholesalers from preventing a licensed pharmacy from acquiring drugs from entities that participate in a particular federal drug discount program

The federal 340B program lets certain hospitals and health care providers buy discounted drugs for their patients, often through contracts with outside pharmacies known as contract pharmacy arrangements. This bill adds a new section to Georgia's pharmacy laws (O.C.G.A. § 26-4-120) that stops drug manufacturers and wholesale distributors from denying, restricting, or otherwise blocking a licensed Georgia pharmacy from acquiring or dispensing drugs obtained this way. The bill also bars manufacturers and wholesalers from cutting off a covered entity's drug access as a way to stop it from contracting with a pharmacy, and prohibits requiring covered entities to hand over claims or utilization data as a condition of getting drugs, unless federal health officials require that data. Any violation would count as an unfair or deceptive business practice under Georgia's Fair Business Practices Act of 1975, opening the door to penalties under that law.

• Adds a new Code section (O.C.G.A. § 26-4-120) stopping manufacturers and wholesalers from blocking licensed pharmacies from getting or dispensing drugs bought through 340B contract pharmacy arrangements.
• Prohibits manufacturers and wholesalers from cutting off a pharmacy's drug access as a way to stop it from contracting with a covered entity in the 340B program.
• Bars manufacturers, wholesalers, and their agents from requiring covered entities to share claims or utilization data as a condition of getting drugs, unless federal law demands it.
• Classifies any violation of the new section as an unfair or deceptive business practice under Georgia's Fair Business Practices Act of 1975, making it subject to that law's penalties.

The bill affects drug manufacturers and wholesale distributors that sell in Georgia, licensed Georgia pharmacies, and hospitals or other health care providers that participate in the federal 340B drug discount program through contract pharmacy arrangements.

Hospitals and clinics serving low-income or uninsured patients rely on 340B discounts, often delivered through partner pharmacies. If manufacturers can no longer restrict which pharmacies fill these discounted prescriptions, patients could keep access to discounted drugs at pharmacies convenient for them, while manufacturers lose a tool they have used to limit contract pharmacy arrangements.

• Section 1 defines 'contract pharmacy arrangement' and 'covered entity,' tying the latter to the federal 340B program described in 42 U.S.C. Section 256b.
• Subsection (b) prohibits manufacturers and wholesalers from denying or restricting a licensed pharmacy's acquisition or dispensing of drugs obtained under a 340B contract pharmacy arrangement.
• Subsection (c) prohibits manufacturers and wholesalers from denying a pharmacy access to their drugs as a means of blocking its contract with a covered entity.
• Subsection (d) bars manufacturers, wholesalers, and their agents from requiring covered entities to submit claims or utilization data as a condition for drug access, except where federal health officials require it.
• Subsection (e) makes any violation an unfair or deceptive act under the Fair Business Practices Act of 1975 and allows penalties under that law or other applicable Georgia law.
• Section 2 repeals any conflicting laws.

1. 2025-01-29House Second Readers (House)
2. 2025-01-28House First Readers (House)
3. 2025-01-27House Hopper (House)

• Todd Jones (R, HD-025)Primary sponsor
• Lee Hawkins (R, HD-027)
• James Hatchett (R, HD-155)
• Charles Cannon (R, HD-172)
• Mack Jackson (D, HD-128)
• Gerald Greene (R, HD-154)

• pharmacies
• drug pricing
• 340B program
• health care access
• drug manufacturers