{"data":{"id":"us-tn/tenn.-code-ann.-56-7-3119","jurisdiction":"us-tn","citation":"Tenn. Code Ann. § 56-7-3119","heading":"Dealings with 340B entities - Discrimination against 340B entity prohibited","body":"(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.\n(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.\n(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;\n(2) Assess a fee, chargeback, or adjustment upon a 340B entity that is not equally assessed on non-340B entities;\n(3) Exclude 340B entities from its network of participating pharmacies based on criteria that is not applied to non-340B entities; or\n(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.\n(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.\nthe drug is a 340B drug.\n(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.\n(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.\n(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;\n(2) The CoverKids Act of 2006, compiled in title 71, chapter 3, part 11, or a successor program; or\n(3) The prescription drug program described in chapter 57 of this title, or a successor program.\n(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.\n(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\n(2) \"National drug code number\" means the unique national drug code number that identifies a specific approved drug, its manufacturer, and its package presentation.","path":["TN Code","Title 56","Chapter 7"],"source_url":"https://oss-data-us.vaquill.ai/v2026.08/us_tn_statutes.parquet","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:26Z","sha256":"28dc2c48918ff8d571abf2a6c16653ea3c451bfd6d2c89a4d55a3a2070ef6d6b","source_id":"us-tn","stale":false,"prev":"us-tn/tenn.-code-ann.-56-7-3118","next":"us-tn/tenn.-code-ann.-56-7-312"},"notice":"GroundRules: Original legal text. Not legal advice."}