Georgia CommonsHouse · Introduced · 2025-2026 Regular Session
HB 139: 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
Last action January 29, 2025 · House Second Readers
House Bill 139 would bar drug manufacturers and wholesalers from blocking Georgia pharmacies from buying and dispensing discounted drugs obtained through the federal 340B program.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Introduced version, the latest the General Assembly's website lists.
In plain language
Under the federal 340B drug discount program, certain hospitals and health care providers can buy medications at reduced prices and have contracted pharmacies dispense them to patients. Some drug manufacturers and wholesalers have restricted which pharmacies can receive these discounted drugs or required extra data before supplying them, according to the arrangement this bill addresses. House Bill 139 adds a new section to Georgia's pharmacy law (O.C.G.A. § 26-4-120) that stops manufacturers and wholesale distributors from denying, restricting, or otherwise blocking a licensed Georgia pharmacy from acquiring or dispensing 340B drugs through a contract pharmacy arrangement with a covered entity. It also bars manufacturers or wholesalers from demanding claims or utilization data from a covered entity as a condition of supplying drugs, unless federal health officials require it. Violations would be treated as unfair or deceptive practices under Georgia's Fair Business Practices Act of 1975.
What the bill does
- Prohibits drug manufacturers and wholesale distributors from blocking a licensed Georgia pharmacy from acquiring or dispensing drugs obtained through a 340B contract pharmacy arrangement.
- Prohibits manufacturers and wholesalers from denying a pharmacy's access to their drugs as a way to stop it from contracting with a 340B covered entity.
- Bars manufacturers, wholesalers, or their agents from requiring a covered entity to hand over claims or utilization data before supplying drugs, unless federal health officials require it.
- Defines key terms including 'contract pharmacy arrangement' and 'covered entity' tied to the federal 340B drug discount program (42 U.S.C. § 256b).
- Classifies violations as unfair or deceptive practices under Georgia's Fair Business Practices Act of 1975 (O.C.G.A. Title 10), allowing penalties under that law or other applicable provisions.
Who it affects
The bill affects drug manufacturers and wholesale distributors that sell medications in Georgia, licensed Georgia pharmacies that dispense 340B discounted drugs, and hospitals or other health care providers that participate in the federal 340B program through contract pharmacy arrangements.
Why it matters
If enacted, pharmacies that dispense discounted drugs for hospitals and clinics under the 340B program would have stronger legal protection against manufacturers or wholesalers cutting off their supply or demanding extra data, which could affect how reliably low-income and safety-net patients can access these discounted medications.
Key provisions
- Section 1 adds new Code section 26-4-120 defining 'contract pharmacy arrangement' and 'covered entity' by reference to the federal 340B program.
- Subsection (b) prohibits manufacturers and wholesalers from denying or restricting a licensed pharmacy's acquisition or dispensing of 340B drugs under a contract pharmacy arrangement.
- Subsection (c) prohibits manufacturers and wholesalers from cutting off drug access to prevent a pharmacy from contracting with a covered entity.
- Subsection (d) bars requiring claims or utilization data as a condition of supplying drugs, except when required by the U.S. Department of Health and Human Services.
- Subsection (e) makes violations 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 conflicting laws.
From the bill
“Neither a manufacturer nor a wholesale distributor shall deny, restrict, prohibit, or otherwise prevent, either directly or indirectly, the acquisition by or dispensing of drugs from a pharmacy licensed pursuant to this chapter that receives drugs purchased under a contract pharmacy arrangement with a covered entity.”
“A violation of this Code section shall constitute an unfair or deceptive act or practice and shall be a violation of Part 2 of Article 15 of Chapter 1 of Title 10, the 'Fair Business Practices Act of 1975.'”
Discussed in meetings (1)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Health Committee, March 5, 2026
From 0:10:42 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 139 would prevent manufacturers and wholesalers from restricting 340B drug deliveries, interfering with covered entities' pharmacy contracts, or conditioning access on data beyond legal requirements. The sponsor said restrictions had reduced participating pharmacies and threatened funding for services such as dialysis and cancer care. Supporting legislators, pharmacists, and hospital and health-center witnesses said local pharmacy contracts supported affordable medicines, delivery and safety-net services. A Georgia Hospital Association witness said voluntary data sharing would remain allowed. Members questioned reporting, fraud safeguards, state-plan costs, legal authority and results elsewhere. The sponsor said existing oversight was sufficient but had no quantitative results from other states. An independent rural oncologist opposed the bill, saying it would strengthen hospitals' financial advantage and accelerate consolidation. Manufacturer witnesses and PhRMA disputed supporters' reporting claims and said lost rebates increased employer and government-plan costs. A Johnson & Johnson witness estimated additional annual costs of more than $22 million for businesses and workers and $3 million for government plans, and warned of constitutional challenges. The chair relayed a State Health Benefit Plan statement that 340B claims were excluded from rebate guarantees. A Healthcare Distribution Alliance witness requested removing wholesalers. A witness for Mended Hearts and Georgia First urged stronger transparency and patient protections. The committee voted to table the bill for further study; no complete tally was announced.
Status timeline
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Todd Jones (R, HD-25)
- Lee Hawkins (R, HD-27)
- Matt Hatchett (R, HD-155)
- Chas Cannon (R, HD-172)
- Mack Jackson (D, HD-128)
- Gerald Greene (R, HD-154)
Topics
- pharmacies
- drug pricing
- 340B program
- health care access
- drug manufacturers