GOVERNOR'S RECOMMENDATION

1. After line 35, enrolled

insert

2. That the provisions of the first enactment of this act shall not become effective unless reenacted by the 2025 Session of the General Assembly.

3. That the Secretary of Health and Human Resources (the Secretary) shall convene a work group composed of relevant stakeholders, including representatives from pharmaceutical manufacturers, health plans, Virginia's federally qualified health centers, Virginia pharmacists, and consumers of prescription drug products, to (i) monitor the implementation of the 340B Program; (ii) evaluate best practices enhancements that may be made to the 340B Program; (iii) study the number of patients who were dispensed or administered drugs at the 340B Program price, including a breakdown of such patients by type of health insurance coverage including Medicare, Medicaid, private insurance, self-pay, and those who are uninsured; (iv) assemble a list of contract pharmacies for each covered entity as defined in § 38.2-3465 of the Code of Virginia, including the location and service areas of such pharmacies; (v) summarize how such covered entities use 340B Program savings; and (vi) study whether the current 340B Program includes a risk of Medicaid dollars going toward non-Medicaid eligible populations. The Secretary shall provide a report on the findings of the work group to the Governor, the Chairmen of the House Committees on Appropriations and Health and Human Services, the Chairmen of the Senate Committees on Finance and Appropriations and Education and Health, and the Joint Commission on Health Care by November 1, 2024, including information on transactions conducted by the 340B Program covered entity and information related to such covered entity's participation in the federal 340B Program for the previous calendar year.