LB168 establishes the 340B Contract Pharmacy Protection Act. This legislation prohibits pharmaceutical manufacturers and their affiliates from denying or restricting the acquisition of 340B drugs by contract pharmacies authorized by 340B entities, such as certain hospitals and clinics. Additionally, it prevents these manufacturers from requiring 340B entities to submit specific data, including purchasing or medical data, as a condition for acquiring 340B drugs, unless mandated by federal law. The Nebraska Attorney General or county attorneys are authorized to enforce compliance with the act.
The Nebraska State Senate passed LB168 on April 3, 2025 by a vote of 42 to 5. We have assigned pluses to the nays because this bill imposes government mandates on private businesses, compelling them to comply with regulations that interfere with their freedom to contract and operate according to their own principles—violating the First Amendment and Article I, Section 10, of the U.S. Constitution. Moreover, the federal 340B program lacks constitutional authorization under Article I, Section 8. By propping up this federal program at the state level, LB168 further entrenches government interference in healthcare and undermines the free market.
