The Senate overwhelmingly passed a bill on Monday that would prohibit a controversial practice through which insurers and drug middlemen prevent consumers from paying less at the pharmacy counter on prescription drugs.
Monday’s legislation, which passed by a 98-2 margin, would prohibit insurers and drug middlemen called pharmacy benefit managers from inserting “gag clauses” into contracts with pharmacies. The clauses prohibit pharmacists from informing consumers it is cheaper to buy a drug out-of-pocket rather than through their insurance.
Americans deserve to know the lowest drug price at their pharmacy, but “gag clauses” prevent your pharmacist from telling you! I support legislation that will remove gag clauses and urge the Senate to act. #AmericanPatientsFirst
— Donald J. Trump (@realDonaldTrump) September 17, 2018
The Senate earlier this month passed a bill that stopped private plans from inserting such clauses into Medicare Part D drug plans.
The House Energy and Commerce Committee is considering its own version of the legislation to prohibit gag clauses for private plans.
Pharmacy benefit managers oversee drug plans for an employer or union-sponsored insurance.
Senators have targeted practices like gag clauses as part of a larger effort to boost transparency in the healthcare system. Sen. Bill Cassidy, R-La., a co-sponsor of the gag clause bill, released a series of healthcare ideas back in May that included improving transparency so patients know the price of healthcare procedures.
