South Dakota § 58-29E-15 - Discrimination prohibited--340B entity--Exclusions.

§ 58-29E-15. Discrimination prohibited--340B entity--Exclusions.

Neither a pharmacy benefit manager nor a pharmacy benefit manager affiliate may, directly or indirectly, discriminate against a 340B entity or a pharmacy under contract with a 340B entity, on the basis that the 340B entity or a pharmacy under contract with a 340B entity participates in the 340B drug discount program by imposing terms or conditions that differ from a similarly situated entity that does not participate in the 340B drug discount program.

Discriminatory acts include:

(1)    Reimbursing a 340B entity at a rate lower than that paid for the same drug to a pharmacy that has a similar prescription volume but is not a 340B entity;

(2)    Assessing a fee or cost, imposing a charge back, or imposing any other adjustment against a 340B entity, on the ground that the 340B entity participates in the 340B drug discount program;

(3)    Restricting access by a 340B entity to a pharmacy network on the ground that the 340B entity participates in the 340B drug discount program;

(4)    Requiring that a 340B entity contract with a specific pharmacy or health coverage plan as a condition of participating in a pharmacy network;

(5)    Imposing a new restriction or an additional charge on a patient who elects to receive a prescription drug through a 340B entity;

(6)    Restricting the method by which a 340B entity may dispense or deliver 340B drugs;

(7)    Auditing a 340B entity, as provided for under § 58-29F-1, more frequently than similarly situated entities that do not participate in the 340B drug discount program;

(8)    Refusing to provide reimbursement or coverage for 340B drugs that are part of a formulary;

(9)    Basing prescription drug benefit coverage or formulary decisions on:

(a)    The 340B status of a drug, including price or availability; or

(b)    Whether a dispensing pharmacy participates in 340B drug pricing;

(10)    Imposing on a 340B entity any requirement or restriction that interferes with the entity’s ability to maximize the value of the discounts obtained through participation in the 340B drug discount program; and

(11)    Imposing on a 340B entity any contractual terms and conditions that differ from those imposed on a similarly situated entity that is not a 340B entity.

Source: SL 2019, ch 213, § 4; SL 2024, ch 203, § 4, eff. Jan. 1, 2025.