Texas bill bans drug makers from blocking 340b discounts

Relating to discriminatory practices by a health benefit plan issuer, pharmacy benefit manager, and third-party payor and certain prescription drug manufacturers, distributors, and related persons with respect to certain entities participating in a federal drug discount program; providing a civil penalty.

Introduced· 2025-02-25

Who's it for

Who's it for: Everyday People

What it means for you

8/10Helps you

Good for everyday people ·

Draft summary, still being checked against the official bill text. Read the source to confirm.

If passed, the bill would stop drug makers and pharmacies from denying or limiting cheap 340b drugs to hospitals and clinics, protecting patients' access.

Our take

What we think, in plain words.

Patients rely on 340b discounts for affordable medicines. This bill keeps manufacturers from cutting them off, so low‑income families keep getting needed drugs. It also gives the state a way to punish violators.

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The facts

What the bill actually says, no spin.

The bill adds Section 431.416 to the Health and Safety Code.
It makes it illegal for manufacturers, PBMs, or payors to discriminate against covered entities in the 340b program.
Violations can be fined up to $50,000 per drug package.
Enforcement can include license suspension or revocation.
No private lawsuits are allowed; complaints go to the state department and attorney general.