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Introduced by Senator Mullin of Rutland District

Referred to Committee on


Subject:  Prescription drugs; Medicaid; corrections; 340B pricing

Statement of purpose:  This bill proposes to expand access to discounted prescription drug prices under the federal 340B program for Medicaid beneficiaries and individuals in the custody of the department of corrections.


It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  28 V.S.A. § 801(e) is added to read:

(e)  In providing medical care for inmates, the department shall contract only with entities that are eligible for participation and make reasonable efforts to participate in the purchase of prescription drugs under Section 340B of the federal Public Health Services Act, 42 United States Code § 256b (1999).

Sec. 2.  33 V.S.A. § 1901(g) is added to read:

(g)(1)  The secretary shall require any beneficiary of a state pharmaceutical assistance program who, based on criteria established by the secretary, resides in the service area of a “covered entity” participating in the federal 340B drug pricing program, as defined in the Public Health Services Act, 42 United States Code § 256b (1999), to receive his or her medical care through that covered entity and thereby have access to low-cost medications.  The secretary shall request approval from the Centers for Medicare and Medicaid Services for an amendment to the Global Commitment for Health Medicaid Section 1115 waiver to carry out the purposes of this subsection.

(2)  As used in this subsection, “state pharmaceutical assistance program” means Medicaid, the Vermont health access plan, the

employer-sponsored premium assistance program, and the Catamount Health assistance program.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont