Bills Banning Pharmacy ‘Gag Clauses’ Head to President’s Desk

Yesterday, the House of Representatives unanimously passed two bills that would prohibit “gag clauses” by health insurers and pharmacy benefit managers (PBMs).

Gag clauses prohibit pharmacists from preemptively informing customers if their prescription would cost less if they paid out of pocket versus paying through insurance.

The Patient Right to Know Drug Prices Act and the Know the Lowest Price Act now head to President Trump’s desk to be signed into law. The bills cover private insurance as well as Medicare Advantage and Part D plans.

Maine Sen. Susan Collins, sponsor of the bills, had this to say about the bills’ passage:

“Insurance is intended to save consumers money. Gag clauses in contracts that prohibit pharmacists from telling patients about the best prescription drug prices do the opposite. Who would think that using your debit card to buy your prescription drugs would be less expensive than using your insurance card? It’s counterintuitive. Americans have the right to know which payment method provides the most savings when purchasing their prescription drugs.”

Currus is very much in support of this legislation, as is NCPA, the American Medical Association, and many others.