Prescription drug pricing.

Assembly Member Rogers, joined by Assembly Members Carrillo, Ransom, and Ward, proposes new protections for qualifying nonhospital 340B community clinics through legislation that would prevent prescription drug manufacturers from imposing restrictive conditions on drug purchases and deliveries. The measure adds Section 127472 to California's Health and Safety Code, addressing manufacturer practices affecting clinics participating in the federal 340B Drug Pricing Program.

The legislation prohibits manufacturers from limiting clinics' use of contract pharmacies, restricting medication eligibility for discounts, or implementing arbitrary distance requirements for drug delivery. Under the bill's provisions, qualifying facilities include licensed community clinics, city or county-operated clinics exempt from licensure, intermittent clinics, and rural health clinics that maintain 340B covered entity status under federal law.

The measure maintains existing state regulations while preserving federal requirements regarding program audits and oversight. These requirements allow the U.S. Secretary of Health and Human Services and drug manufacturers to audit covered entities' records for compliance with duplicate discount prohibitions and restrictions on drug resale.