Drug Distribution Amendments

Drug makers cannot block discounted medicines

Utah protects organizations and pharmacies using the federal 340B drug discount program. Eligible drugs are those qualifying organizations buy through that program under federal rules. Drug makers, their agents, and affiliates cannot block pharmacy contracts or deny drugs to prevent those contracts. They cannot restrict buying, dispensing, or delivering eligible drugs to locations the organizations authorize, unless federal law prohibits it. They cannot prevent receipt of these drugs, including through deadlines for restocking or filing claims. They also cannot require buying a discounted drug from a supplier when they permit buying a non-discounted drug instead. They cannot demand claims data, drug-use data, or third-party contract information unless federal law requires sharing it. These protections do not override federal law. Utah's Public Employees’ Benefit and Insurance Program can change its business practices to limit financial effects. The law provides no new funding. The default start date is May 6, 2026. With two-thirds approval in both legislative houses, it takes effect upon the governor's approval or a veto override. Without the governor's signature, that earlier start is the day after the constitutional signing deadline.