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

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.

• 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.

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.

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.

• 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.

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