New York bill to shield 340B drug discounts from insurer clawbacks dies in Assembly

A New York bill that would have prohibited health insurers and pharmacy benefit managers from reducing reimbursement to 340B-covered entities failed to pass the state Assembly. The legislation aimed to protect hospitals and clinics that rely on the federal drug discount program from payer policies that recoup savings by lowering payment rates. The bill's failure leaves 340B providers in the state vulnerable to continued contract terms that can erase the program's financial benefit, which is critical for funding care for low-income populations. This reflects ongoing national battles between 340B entities and payers over the program's economics.