Vermont H 266: An act relating to the postretirement adjustments to the retirement allowance for the State Teachers’ Retirement System of Vermont

Bill Text

No. 55 Page 1 of 8
2025

VT LEG #384271 v.1
No. 55. An act relating to the 340B prescription drug pricing program.
(H.266)
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 18 V.S.A. chapter 91, subchapter 6 is added to read:
Subchapter 6. 340B Drug Pricing Program
§ 4681. DEFINITIONS
As used in this subchapter:
(1) “340B contract pharmacy” means a pharmacy that has a contract
with a 340B covered entity to receive and dispense 340B drugs to the 340B
covered entity’s patients on the covered entity’s behalf.
(2) “340B covered entity” means an entity participating or authorized to
participate in the federal 340B drug pricing program, as described in 42 U.S.C.
§ 256b. The term includes a 340B covered entity’s pharmacy.
(3) “340B drug” means a drug that has been subject to any offer for
reduced prices by a manufacturer pursuant to 42 U.S.C. § 256b and is
purchased by a 340B covered entity.
(4) “Discount” means a reduction in the amount a 340B covered entity
is charged for a 340B drug at the time of purchase.
(5) “Manufacturer” has the same meaning as in 26 V.S.A. § 2022.
(6) “Pharmacy” means a place licensed by the Vermont Board of
Pharmacy at which drugs, chemicals, medicines, prescriptions, and poisons are
compounded, dispensed, or sold at retail.

No. 55 Page 2 of 8
2025

VT LEG #384271 v.1
(7) “Pharmacy benefit manager” has the same meaning as in section
3602 of this title.
(8) “Rebate” means a discount in which the terms are fixed and are
disclosed in writing to a 340B covered entity at the time of the initial purchase
of the 340B drug to which the discount applies, but which discount is not
applied at the time of purchase.
§ 4682. DISCRIMINATION AGAINST 340B ENTITIES PROHIBITED
(a) A manufacturer or its agent shall not deny, restrict, prohibit, or
otherwise interfere with, directly or indirectly, the acquisition of a 340B drug
by or delivery of a 340B drug to a 340B contract pharmacy on behalf of a
340B covered entity unless receipt by the 340B contract pharmacy is
prohibited by the U.S. Department of Health and Human Services.
(b) A manufacturer or its agent shall not directly or indirectly require a
340B covered entity to submit any claims, utilization, encounter, purchase, or
other data as a condition for allowing the acquisition of a 340B drug by or
delivery of a 340B drug to a 340B contract pharmacy unless the claims or
utilization data sharing is required by the U.S. Department of Health and
Human Services.
(c) A manufacturer or its agent shall not interfere with the ability of a
pharmacy contracted with a 340B covered entity to dispense 340B drugs to
eligible patients of the 340B covered entity.

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VT LEG #384271 v.1
(d) A manufacturer or its agent shall offer or otherwise make available
340B drug pricing to a 340B covered entity or 340B contract pharmacy in the
form of a discount at the time of purchase and shall not offer or otherwise
make available 340B drug pricing in the form of a rebate.
§ 4683. MEDICAID UNAFFECTED
Nothing in this subchapter shall be deemed to apply to the Vermont
Medicaid program as payor.
§ 4684. VIOLATIONS
(a) A 340B covered entity, 340B contract pharmacy, or other person
injured by a manufacturer’s or its agent’s violation of this subchapter may
bring an action in Superior Court for injunctive relief, compensatory and
punitive damages, costs and reasonable attorney’s fees, and other appropriate
relief.
(b) A violation occurs each time a prohibited act is committed. For
purposes of section 4682 of this subchapter, a prohibited act is defined as each
package of 340B drugs that is subject to a discriminatory action by a
manufacturer or its agent.
§ 4685. NO CONFLICT WITH FEDERAL LAW
Nothing in this subchapter shall be construed or applied to conflict with or
to be less restrictive than federal law for a person regulated by this subchapter.

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VT LEG #384271 v.1
Sec. 2. 18 V.S.A. § 9406 is added to read:
§ 9406. REPORTING ON PARTICIPATION IN 340B DRUG PRICING
PROGRAM
(a) Annually on or before January 31, each hospital participating in the
federal 340B drug pricing program established by 42 U.S.C. § 256b shall
submit to the Green Mountain Care Board, in a form and manner prescribed by
the Board, a report detailing the hospital’s participation in the program during
the previous hospital fiscal year, which report shall be posted on the Green
Mountain Care Board’s website and which shall contain at least the following
information:
(1)(A) For prescription drugs that the hospital or any entity acting on
behalf of the hospital obtained through the 340B program and dispensed or
administered to patients during the previous calendar year:
(i) the aggregated acquisition cost for all such prescription drugs;
and
(ii) the aggregated payment amount that the hospital received for
all such prescription drugs, with information reported separately for each of the
following distribution channels:
(I) dispensed drugs from a