1. A. As used in this section:

   1. (1) "340B drug" means a drug that is purchased at a discount in accordance with the 340B program requirements;
   2. (2) "340B program" means the federal drug pricing program created pursuant to 42 U.S.C. Section 256b;
   3. (3) "covered entity" means an entity participating in the 340B program; and
   4. (4) "pharmacy benefits manager" means an entity that provides pharmacy benefits management services.

2. B. A pharmacy benefits manager or a third party shall not discriminate against a covered entity on the basis of its participation in the 340B program by:

   1. (1) reimbursing a covered entity for a 340B drug at a rate lower than that paid for the same drug to pharmacies, similar in prescription volume, that are non-covered entities;
   2. (2) assessing a fee, chargeback or other adjustment to the covered entity that is not assessed to non-covered entities;
   3. (3) imposing a provision that prevents or interferes with a person's choice to receive 340B drugs from a covered entity; or

   4. (4) imposing terms or conditions that differ from terms or conditions imposed on a non-covered entity, including:

      1. (a) restricting or requiring participation in a pharmacy network;
      2. (b) requiring more frequent auditing or a broader scope of audit for inventory management systems using generally accepted accounting principles;
      3. (c) requiring a covered entity to reverse, resubmit or clarify a claim after the initial adjudication, unless these actions are in the normal course of pharmacy business and not related to the 340B program; or
      4. (d) charging an additional fee or provision that prevents or interferes with an individual's choice to receive a 340B drug from a covered entity.

History: Laws 2023, ch. 206, § 7.

ANNOTATIONS

Effective dates. — Laws 2023, ch. 206 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 16, 2023, 90 days after adjournment of the legislature.