Section 56-7-3119 - Dealings with 340B entities - Discrimination against 340B entity prohibited(a) A health insurance issuer, managed health insurance issuer as defined in § 56-32-128(a), pharmacy benefits manager, or other third-party payer shall not: (1) Reimburse a 340B entity for pharmacy-dispensed drugs at a rate lower than the rate paid for the same drug by national drug code number to pharmacies that are not 340B entities;(2) Assess a fee, chargeback, or adjustment upon a 340B entity that is not equally assessed on non-340B entities;(3) Exclude 340B entities from its network of participating pharmacies based on criteria that is not applied to non-340B entities; or(4) Require a claim for a drug by national drug code number to include a modifier to identify that the drug is a 340B drug.(b) With respect to a patient eligible to receive drugs subject to an agreement under 42 U.S.C. § 256b, a pharmacy benefits manager, or third party that makes payment for those drugs, shall not discriminate against a 340B entity in a manner that violates § 56-7-2359 or otherwise prevents or interferes with the patient's choice to receive those drugs from the 340B entity.(c) Notwithstanding § 56-7-1005, this section does not apply to:(1) The TennCare program administered under the Medical Assistance Act of 1968, compiled in title 71, chapter 5, part 1, or a successor Medicaid program;(2) The CoverKids Act of 2006, compiled in title 71, chapter 3, part 11, or a successor program; or(3) The prescription drug program described in chapter 57 of this title, or a successor program.(d) As used in this section: (1) "340B entity" means a covered entity participating in the federal 340B drug discount program, as defined in section 340B of the Public Health Service Act, 42 U.S.C. § 256b, including the entity's pharmacy or pharmacies, or any pharmacy or pharmacies under contract with the 340B covered entity to dispense drugs on behalf of the 340B covered entity; and(2) "National drug code number" means the unique national drug code number that identifies a specific approved drug, its manufacturer, and its package presentation.Added by 2021 Tenn. Acts, ch. 569, s 1, eff. 7/1/2021.