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Pennsylvania Bill SB 1481 regulates 340B drug reimbursement rates and prohibits discriminatory practices by insurers and manufacturers

Original title: An Act providing for reimbursement claims methodology and for safety net reimbursement protection; providing for safety net prescription drug distribution and access protections; imposing duties on the Department of Human Services, Insurance Department and Office of Attorney General; and imposing penalties.

Last action · September 25, 2026: Referred to HEALTH AND HUMAN SERVICES, Sept. 25, 2026Sponsors: Michele Brooks and 5 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

Pennsylvania Senate Bill 1481 prohibits pharmacy benefit managers, covered insurers, and drug manufacturers from discriminating against 340B covered entities and contract pharmacies by underpaying claims or restricting drug distribution. The measure sets minimum reimbursement rates based on national acquisition costs, requires exclusive use of claims-level billing modifiers, and establishes fines up to $50,000 per violation enforced by the Insurance Department and Office of Attorney General.

Why it matters

The measure directly alters payment terms and distribution rights for safety-net clinics, pharmacies, insurers, and drug manufacturers operating in Pennsylvania, establishing statutory fines and business suspension penalties for noncompliance.

Background
  • 340B drug pricing program requirements stem from federal legislation designed to allow safety-net healthcare providers to stretch scarce federal resources. context
  • State legislation concerning pharmacy benefit managers and 340B reimbursement has expanded significantly across multiple states in recent years to address contract pharmacy restrictions. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

covered entities

Covered entities receive statutory protection regarding minimum reimbursement rates, grievance procedures, and non-discriminatory drug distribution.

Directly affected

contract pharmacies

Contract pharmacies are included in minimum reimbursement protections and are safeguarded against distance limitations and discriminatory pricing.

Directly affected

pharmacy benefit managers

Pharmacy benefit managers face prohibitions on underpaying 340B claims, mandated claims-level billing methodologies, and financial penalties for violations.

Directly affected

covered insurers

Covered insurers must comply with 340B reimbursement floors and are subject to audits, fines, and business suspension for noncompliance.

Directly affected

manufacturers

Manufacturers are prohibited from restricting or delaying 340B drug acquisitions and face fines up to $50,000 per violation.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What reimbursement rates must insurers and pharmacy benefit managers pay for 340B drugs?
They must pay at least the or the for s that do not have a defined national average drug acquisition cost.
Which state agencies are responsible for enforcing the provisions of the Safety Net Nondiscrimination Act?
The Insurance Department enforces sections 3 and 5, the Office of Attorney General enforces section 6, and the Department of Human Services oversees related regulations and disciplinary measures.
Can a covered entity waive its reimbursement protections under this act?
Yes, a covered entity has the sole discretion to voluntarily agree to waive protections without direct or indirect coercion, and may withdraw the waiver upon reasonable notice.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

1 action
  1. Sep 25, 2026SenateCommittee
    Referred to HEALTH AND HUMAN SERVICES, Sept. 25, 2026

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Comprehensive 340B Protection Framework

The bill pairs minimum reimbursement mandates for insurers with strict distribution protections and severe financial penalties for drug manufacturers.

Connected Entities

Insurance Department, Michele Brooks, KANE and 7 more
OrganizationInsurance Department“Commonwealth department tasked with enforcement, investigations, and fines”Map →
PersonMichele Brooks“Senator, District 50, primary sponsor of SB 1481”Map →
PersonKANE“Senator, District 9, cosponsor”Map →
PersonJudy Ward“Senator, District 30, cosponsor”Map →
PersonCamera Bartolotta“Senator, District 46, cosponsor”Map →
OrganizationDepartment of Human Services“Commonwealth department tasked with duties and regulations under the act”Map →
PersonRosemary Brown“Senator, District 40, cosponsor”Map →
PersonElder Vogel“Senator, District 47, cosponsor”Map →
PersonTim Kearney“Senator, District 26, cosponsor”Map →
OrganizationOffice of Attorney General“Commonwealth office tasked with enforcing section 6 and consumer protection laws”Map →

Sources

Open source document

www.palegis.us

Analysis Score

0–100
  • Significance80
    How much this matters to a regular citizen
  • Controversy65
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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